Clues Network Pvt. Ltd, which operates online marketplace ShopClues, has raised Rs 50 crore (around $7.7 million) in venture debt from InnoVen Capital, according to a media report.
ShopClues will use the funds for day-to-day business activities, Mint reported.
“A company which is getting close to profitability has the option to raise either equity money or debt. Equity will lead to dilution, but you can pay off debt through your balance sheet. Debt is a good instrument to meet working capital requirements or plug gaps to achieve profitability,” Sanjay Sethi, co-founder and CEO of ShopClues, told the newspaper.
“Our burn is reducing consistently. Hence, debt comes into play so that we can scale rapidly and reach profitability,” Sethi said.
InnoVen Capital’s group chief operating officer and India chief executive Ajay Hattangdi confirmed the development to VCCircle.
Email queries sent and calls made to Sethi and ShopClues co-founder Radhika Aggarwal did not elicit a response till the time of publishing this report.
In March, The Economic Times reported that ShopClues is looking to raise $75-100 million (Rs 490-652 crore) in fresh funding as it has begun discussions with merchant banks for an initial public offering (IPO).
ShopClues has so far raised an estimated $200 million from investors, including Singapore sovereign wealth fund GIC, Tiger Global Management, Nexus Venture Partners and Helion Venture Partners.
In its last funding round, it entered the unicorn club, having surpassed a valuation of $1 billion. It raised an undisclosed amount in a Series E round led by GIC, with participation from existing investors Tiger Global and Nexus Venture.
The Gurgaon-based company claims to have clocked 100 million monthly visits on its website. It also claims that its platform covers over five crore products offered by more than five lakh merchants.
In October last year, it acquired two startups to enhance support for merchants on its platform.
In July 2016, it acquired payments firm Momoe in a part-cash, part-stock transaction.
In the financial year ended 31 March 2016, ShopClues’ standalone revenues more than doubled to Rs 179 crore while losses nearly quadrupled to Rs 381 crore.
Of late, ShopClues has been in the news with founder and former CEO Sandeep Aggarwal accusing his wife, co-founder and chief business officer Radhika Aggarwal, and co-founder and CEO Sanjay Sethi of thwarting his re-entry into the company and having an affair.
However, the company’s board has come out strongly in support of Radhika and Sethi, and accused Sandeep of engaging in a personal vendetta.
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