Amid fund crunch, ShopClues raises $1M bridge round from Unilazer Ventures

Online marketplace ShopClues has picked up a paltry $1 million in a bridge round from Ronnie Screwvala-managed Unilazer Ventures.
 
This comes at a time when the online marketplace has been struggling to raise fresh capital and speculation has been rife about it merging with another e-tailer.
 
The Indian arm of Clues Network Inc, has allocated about 1,027 equity shares to the Indian subsidiary for raising this round, as per business research platform Paper.vc.
 
The Gurgaon-based company last raised equity capital in 2016 when it claimed it had become a unicorn, a privately held startup valued at $1 billion or more. Since then the company has raised venture debt and cut down its business in several categories. Tiger Global, Nexus Venture Partners and GIC are some of its prominent investors.
 
Asked about why the e-tailer raised such a small amount, the company co-founder Radhika Aggarwal refused to comment on the matter.
 
For now, ShopClues is largely selling fashion, mobile, and electronics accessories and home & kitchen products. It is believed the company has chosen to focus on these segments to cut its monthly spends significantly. Fighting bigger rivals like Amazon or Flipkart is a costly affair in segments like smartphones, large appliances among others. ShopClues has always been focused on non-metro cities but the majority of its sales now come from tier III towns.
 
Over the past few months, the company is said to be exploring merger options with other market players but it has not reached any deal yet. Aggarwal did not comment on merger talks.
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