E-commerce marketplace ShopClues has raised $100 million investment led by Tiger Global with participation from existing investors Helion Venture Partners and Nexus Venture Partners, reports The Economic Times. ShopClues co-founder and chief marketing officer Radhika Aggarwal has told the publication that they intend to use this investment to strengthen their technology and marketing.
With this investment, ShopClues has raised an overall $115 million investment until now. This includes the $10 million investment from Helion Venture Partners, Nexus Partners and Netprice.com CEO Teruhide Sato in March 2013 and $4 million Series A funding in September 2012.
Interestingly, its worth noting that Tiger Global is also one of the largest investors in another e-commerce marketplace Flipkart, having participated in every single investment round since it first invested in the e-commerce major in 2010.
ShopClues Wholesale: While ShopClues essentially competes with Flipkart in the country, its approach is slightly different. The company had introduced a wholesale section in March last year, enabling users or small retailers to purchase products in bulk at wholesale prices. Through this, wholesale retailers got an opportunity to offer their products for bulk online purchase without worrying about fulfilment and logistics, something which is currently not present in Flipkart.
The report says that ShopClues is also focusing on unbranded or lesser known products and positions itself as a marketplace for buyers and sellers in smaller cities. However, other e-commerce players have also started focusing on this segment, after witnessing a significant increase in sales over the past year or so.
Mobile-focused e-commerce marketplace Paytm which focuses on the long tail merchants, is also reportedly raising $575 million from China’s Alibaba. A The Wall Street Journal report had also suggested that post this investment, Indians will be able to shop on Alibaba’s sites and make payments through Paytm, while Chinese customers will be able to buy from Paytm’s merchants by using Alipay.