homeretail News

Our differentiation is very clear, says ShopClues co founder on impact of Walmart Flipkart deal

Our differentiation is very clear, says ShopClues co-founder on impact of Walmart-Flipkart deal

Our differentiation is very clear, says ShopClues co-founder on impact of Walmart-Flipkart deal
Profile image

By Binoy Prabhakar  May 10, 2018 12:05:03 PM IST (Updated)

E-commerce startup ShopClues, founded in 2011, counts as its investors Singapore sovereign wealth fund GIC, Tiger Global Management and Nexus Venture Partners.

Recommended Articles

View All

In January 2016, the company joined the ranks of Indian unicorns after raising funds in a new round that valued the company at more than $1.1 billion. Unlike most online retailers, ShopClues primarily pursues customers in tier-2 and tier-3 cities as well as rural areas.
But it could face fierce competition owing to the Walmart-Flipkart deal and plans of Amazon to ramp up focus on these markets. Radhika Ghai, co-Founder and chief brand officer of ShopClues, is unfazed by these developments.
She says the company’s strategy to be focussed on a few categories, a different customer segment and a different merchant segment will stand it in good stead.
Edited Excerpts:
What are your first thoughts on the Walmart-Flipkart deal?
Certainly, it is a great moment for the e-commerce industry in India. It proves that there is huge untapped potential in the Indian market.
 In what ways do you think the deal will impact the Indian commerce sector?
It's too early to get into the impact factor. Let's wait and watch.
Does the deal presage more consolidation in the sector? 
That will be presumptive to comment upon.
Does the deal warrant a change in strategy for Shoplcues given that Walmart has a history of focussing on tier-2 and tier-3 markets and would look to ride on the Flipkart network to focus on these markets, the same that are the mainstay of your company? 
The difference between us and others is that despite being a horizontal player, we are niche. We are a niche horizontal player. We are very focussed on a few categories, a different customer segment and a different merchant segment. I think we have executed to a point where the differentiation is very clear. This is the market that will continue to grow. We strongly believe that, for us, we want to be the shopping destination for next half a billion users that come online. And that is where we are focussed.
Amazon has pumped in Rs 2,600 crore into its Indian unit days before the Walmart-Flipkart deal. Are you looking for fresh funding in the same vein?
No, we are not. We are well capitalised with strong backing by investors.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng