Sanjay Sethi, co-founder of Gurgaon-based Clues Network that runs online marketplace ShopClues.com, has stepped in as the new CEO after his predecessor Sandeep Aggarwal (also co-founder) was arrested by The Federal Bureau of Investigation (FBI) earlier this year. Aggarwal was arrested on insider trading charges. He was later released on bail.
Talking to Techcircle.in, Sethi shared that post Aggarwal's arrest nothing has changed at the company and they have been maintaining a steady growth. An alumnus of IIT-BHU and IIT Delhi, Sethi had earlier worked at companies like eBay and Tradebeam. On Aggarwal's status, Sethi just stated that he (Aggarwal) is dealing with it on a personal level. Aggarwal was a Wall Street analyst prior to starting ShopClues and according to the FBI, he allegedly tipped off Richard Lee, the portfolio manager at the hedge fund SAC Capital, about a pending deal between Microsoft and Yahoo. He was arrested in San Jose earlier this year while he was visiting the US. The FBI later tweeted his arrest.
Founded in 2011 as a managed marketplace, ShopClues is backed by high-profile investors and PE funds. In March this year, it raised a series B round of $10 million (Rs 54.1 crore) from Nexus Venture Partners, Helion Venture Partners and Netprice.com, a Japanese business group based in Tokyo. Earlier, Nexus Venture Partners led a $4 million series A round in the company that also saw the participation of an unnamed Asia-based VC investor. Sethi maintained that post this Aggarwal's arrest controversy, none of the investors have exited the company and in fact have been very supportable. "This unfortunate incident has had no effect whatsoever on the company and the business," he added.
As of August this year, the company claimed to be processing close to 10,000 orders daily or a run rate of close to 3.5 million order per annum. The number of products sold at ShopClues increased to 1.8 million SKUs, with total listed merchandise value of more than Rs 4,500 crore.