E-commerce platform ShopClues said its revenues have grown by 60 percent this fiscal, while losses have been trimmed by almost 40 percent compared to the previous year as it focusses on growing business from categories like fashion and strengthening position in Tier III cities and beyond.
According to a PTI report: The Gurugram-based company, which competes with the likes of Flipkart and Amazon, is also confident of hitting profits in the next 12-18 months.
Speaking to PTI, Co-founder and CEO Sanjay Sethi said the 2017 was spent ensuring that the company has the “right revenue margins” without any discounting or heavy spending on warehousing adding to its costs.
“2018 will be about continuing the growth. We became unit economic positive across all categories last year and we are looking at hitting profits in the coming fiscal,” he was further quoted by PTI as saying.
Sethi declined to comment on topline and bottomline numbers as these numbers are still being audited, Sethi said revenues have grown about 60 percent, while losses have come down by about 40 percent.
According to documents filed by the company with the Corporate Affairs Ministry, ShopClues’ revenue from operations was at Rs 180.3 crore in 2016-17, against Rs 161.4 crore in the preceding fiscal. Its losses were also lower at Rs 332.65 crore for the year ended March 2017 compared to a loss of Rs 383.05 crore in 2015-16.
“We are like the ‘bazaar’. Our customers are cost-conscious. They are definitely ambitious and want the big brands but a significant part of their purchases is still done through places like local markets,” Sethi explained to PTI.
He added that about 80 percent of the company’s orders come from Tier III cities and beyond from places like Haflong, Palai, Chatrapur etc and that these customers are also buying more frequently — 20 percent more as compared to those in metros.
Asked about competition against heavyweights like Flipkart and Amazon, ShopClues co-founder and Chief Business Officer Radhika Ghai said there is enough room in the market for multiple players to grow.
“Everyone thought shopping malls will kill big markets like Sarojini Nagar in Delhi. But that hasn’t happened. People throng both of these locations and are buying. Same is the case with us and our competitors,” she told PTI.
Ghai added that the company has till date raised about US $200 million and on track to hit profits, which shows that its “business model is working well”.
She pointed that the e-commerce market in India is underpenetrated at about 2 percent of the multi-billion dollar retail industry in India and there is room for all the players to grow their business.