ShopClues narrows losses significantly as operating revenue jumps 50% for FY18
Clues Network Pvt. Ltd, which owns and operates e-commerce marketplace ShopClues, narrowed its net loss significantly on the back of a 50% year-on-year rise in operating revenue to Rs 271 crore for 2017-18 and reduction in employee expenses.
During the period, net loss dropped to Rs 208 crore from Rs 347 crore and employee benefit expenses narrowed to Rs 111 crore from Rs 120 crore. TechCircle reported in March that the firm had let go of 52 employees as part of performance review.
Total income rose 46% year after year to Rs 273 crore.
The firm’s audited report also said that ShopClues is in talks with investors for funding.
The company’s liabilities exceeded assets by Rs 17 crore, the report said, adding that the firm has undertaken cost rationalisation initiatives to narrow the gap.
In August, ShopClues chief executive Sanjay Sethi in a company blog had said, “There has been a dramatic drop in monthly losses, driven by a positive contribution margin. We are close to break-even today, and with a marginal improvement in scale and fixed costs, we expect to reach this milestone this holiday season.”
The company had raised Rs 110 crore in August from existing investors Singaporean sovereign wealth fund GIC Pte. Ltd and media-entrepreneur-turned-investor Ronnie Screwvala’s Unilazer Ventures.