Clues Network Pvt Ltd which operates the horizontal e-commerce marketplace ShopClues.com has raised Rs 54 crore ($10 million) from Helion Venture Partners, Nexus Partners and Netprice.com CEO Teruhide Sato, reports The Economic Times. The report states that the company plans to use the funding raised to expand to more cities in India.
Prior to this, Shopclues had raised around $15 million across multiple funding rounds, as indicated by the report. This includes a $4 million Series A funding in September 2012, and more than $2 million angel funding from unknown International angel investors in December 2011.
Launched in December 2011, ShopClues.com is a fully managed e-commerce marketplace. While the company doesn’t have any inventory of its own, it allows merchants, brand owners and authorized dealers to showcase their product merchandise to prospective customers, and takes care of the marketing, payment and the product fulfillment processes.
The company claims to offer more than 250,000 products across more than 550 categories like electronics, fashion, jewelry, health & nutrition, books, gaming, sports and pet supplies among others. It also claims to have products from more than 2,000 global and regional brands on its platform.
As of September 2012, the company had claimed to be generating 2,500 transactions per day with an average ticket size of Rs 900 and had recorded Rs 12 crore in gross sales since launch.
Other E-commerce Marketplaces
Of late, we have quite a few e-commerce players opting for the marketplace model in a bid to be compliant with India’s FDI policy. Foreign Direct Investment in e-commerce has not been allowed in India but it currently allows marketplaces, which merely act as a platform for sellers to find buyers for their products and don’t retail their own goods, can take foreign direct investment. Other e-commerce marketplaces in the country include:
- Infibeam – Earlier this month, Infibeam changed its business model from being a pure e-commerce business to a hybrid venture which will be partly a marketplace and partly an e-commerce retailer. The company claimed that it had already signed up more than 1,000 sellers for this marketplace offering in the past two months.
- Ebay India – previously known as baazee.com
- Snapdeal - started out as a deals site and then morphed into a marketplace.
- Indiatimes Shopping – started out as a marketplace, and has now chosen a hybrid approach. While it was a pureplay marketplace, Indiatimes had funding from Sequoia Capital India, which it bought back.
- IndiaPlaza – Probably one of the oldest marketplaces in the country which was started in 1999.
- BuyThePrice - started off as an e-commerce venture but opted for an marketplace model in December 2012, as indicated by a TechCircle report. It has raised funding from Naspers and from a series of angel investors including Google India MD Rajan Anandan, Rehan Yar Khan, Sunil Kalra and many others.
- Rediff Shopping
Last month, Flipkart had officially revealed its plans to launch a marketplace, and was looking to sign up external sellers for the launch of its marketplace. The company is yet to launch its marketplace, but it had sold its front end retail operations WS Retail to a group of investors led by former OnMobile COO Rajiv Kuchhal last month.