Shopclues raises Rs 8 crore from its parent firm
today Oct 1, 2019
Clues Network Inc, the parent firm of Gurugram-based e-commerce platform ShopClues, has infused Rs 8 crore ($1.2 million) into its India entity.
The company issued 4,320 equity shares at a nominal value of Rs 10 and a premium of Rs 18,190 per share to Clues Network Inc, according to the company’s filings with Ministry of Corporate Affairs.
ShopClues has been in troubled waters of late, and has fired around 200 employees as part of its downsizing activity to trim losses.
The fresh capital infusion is expected to give Shopclues the much-needed support to meet its operational costs and keep the company going until it finds a buyer.
ShopClues has been in and out of talks with another larger e-commerce firm Snapdeal over a potential acquisition of its business. However, Snapdeal decided not to acquire ShopClues, at least for now, following the results of the due diligence investigation it carried out with Ernst & Young.
Shopclues had posted revenue to Rs 273 crore for the financial year 2017-18 and narrowed its losses by 40 percent to Rs 208 crore.
The company had earlier criticised large foreign businesses like Amazon and Walmart for taking over India’s e-commerce market, which it feels is the main reason why players like Shopclues are getting wiped out from the market.
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