- Qoo10 can enter an already overcrowded Indian e-commerce space with ShopClues in its portfolio. Qoo10 is located in Singapore, Indonesia, Malaysia, China, Hong Kong.
- Eventually, a customer has been identified by ShopClues. The Singapore-based e-commerce marketplace Qoo10 has acquired the company in an all-stock deal of about $70-100 million.
Eventually, a customer has been identified by ShopClues. The Singapore-based e-commerce marketplace Qoo10 has acquired the company in an all-stock deal of about $70-100 million. It is not known how Qoo10 will be offered by the Tiger Global-backed company.
Qoo10 can enter an already overcrowded Indian e-commerce space with ShopClues in its portfolio. Qoo10 is located in Singapore, Indonesia, Malaysia, China, Hong Kong.
For the past six months, ShopClues has been searching for a buyer. It was trying to make a deal with Snapdeal. However, due to its unpaid liabilities, a sharp decline in size among other factors, the Kunal Bahl-led ventured turned down the offer.
Qoo10 will also acquire Momoe as part of the deal, according to an ET report. In 2016, ShopClues had received around $12 million from the Bengaluru-based payments company.
ShopClues has been mired with several issues since the start of the current fiscal, including shrinking size, inability to collect follow-up money, and several rounds of layoffs. More than 500 people were fired across several tranches by the company.
In contrast, the social exchange platform EzoNow is also competing with well-funded corporations focused on social trade.
Investors from ShopClues also sought a merger with CraftsVilla, Limeroad and a few others. Nevertheless, none showed an appetite for absorbing a large number of losses and liabilities.
Since Snapdeal has not agreed to acquire Sanjay Sethi-led company in less than $50 million, it is highly unlikely that an offshore e-commerce company will shell out $70-100 million to acquire a fighting Unicorn.
Importantly, the transaction would offer hardly anything to anybody— investors, founders or employees (ESOP owners).
The company was also scanned for funds received from the US-based holding entity–Clues Network under the Enforcement Directorate (ED).
ShopClues has certainly prevented this deal from collapsing. It is worth noting that the company was acquired through several institutional rounds in less capital it raised. It is one of the rarest instances where such a Unicorn has fallen. It used to be referred to in Indian e-commerce parlance as one of the dark horses.
ShopClues is an online marketplace established in July 2011 in Silicon Valley by Sanjay Sethi, Sandeep Aggarwal, and Radhika Aggarwal, Based in Gurgaon, India, the company claims to have over 6 lakh merchants and 2.8 crore products on its platform, serving over 32,000 pin codes across the country.