ShopClues' revenue drops by almost 50% in FY22, raising concerns about sustainability
05 May 2023, Mumbai
ShopClues, one of India's leading online marketplaces, has been facing a challenging time in recent months, with its revenue dropping by almost 50% in FY22.
This decline raises questions about the sustainability of its business model and its ability to compete in the fiercely competitive e-commerce market. The company's net loss also increased from INR 67 crore in FY21 to INR 82 crore in FY22.
The intense competition in the e-commerce market is one of the main reasons behind ShopClues' struggles. Larger players such as Amazon and Flipkart have dominated the market, making it difficult for ShopClues to attract new customers and retain existing ones.
Another factor contributing to ShopClues' challenges is its focus on selling low-cost products, which has limited its potential for growth. The company has also faced operational hurdles, including difficulties in managing its supply chain and logistics, and struggles with cash flow.
Despite these challenges, ShopClues has taken steps to address its operational issues and diversify its product offerings. The company has raised INR 100 crore in a recent funding round and remains committed to investing in growth initiatives.
