Demonetisation finds yet another victim. Shopclues had been planning to go public in NASDAQ by September 2017, but now the dates have to pushed to early 2018. CEO Sanjay Sethi confirmed this,
“As far as the structure of the organisation goes, we are all set for an IPO. But bankers tell us that the best time to go for an IPO would be Q12018.”
Demonetisation had also affected the company’s sales. However, it came up with an online payments system called Reach to enable its sellers to carry out cashless transactions.
However, this might be for the company’s good in the long run, says Prithvi Haldea, chairman of analysis firm Prime Database. Haldea says,
“IPO is a very important event and, hence, when companies file for a public offering, they want to be sure they can get the right valuation and the right number of investors.”
Earlier Shopclues’ investors Clues Network Inc. had put in Rs. 400 crores in the company. CEO Sethi says,
“We are still losing money, but we have been able to cap our (cash) burn by 50% while increasing our top line by 200%. This is sustainable growth and none of the changes we did to get here will be rolled back. We have done the spring cleaning that we had to do and now is the time to put more money into the top line.”
Sethi also says that the company is looking forward to GST that is likely to be rolled out in June. He says,
“We will spend a lot of time between now and June to grab merchants’ attention and offer them solutions for best practices to sell online or just do commerce in general, or both.”
An anonymous source said that the company is also hoping to raise $25 to 30 million this year. Its last round of investment (an undisclosed amount) came from Singapore based investment firm GIC in January 2016.
We hope that the new year will bring with it good opportunities and the GST.