A Look Back at FY 2019 and the Way Forward
Strength to Strength
Last 3 years have been challenging to say the least, but these challenges also allowed us to rediscover ourselves. As a company, we had to figure out who we are and what we stand for. Figure out what value we add to our customers & employees. The good news is that we have come a long way and are stronger & wiser.
Recap our journey so far
Our mission to serve the next 400 million middle Indian consumers, cannot be accomplished by trying to out-compete Amazon (or FlipKart) by using their playbook. We had to play to our strengths, and adapt to the needs of the market as we see it. Hence since 2016, we have doubled down on productizing our technology, re-jigging our categories to align with our TG, dramatically improve unit economics and lift customer NPS. For context, we ended Q4 FY2017 with Rs.38 Cr in net revenue and a Rs.89 Cr burn, while last quarter (Q4 FY2019) we did Rs.61 Cr in net revenue with a Rs.8 Cr burn. That is 60% increase in revenue while reducing our burn by 90% in the same period.
ShopClues financials Q4’17 vs. Q4’19
Today we have about 50 million registered customers with 22 million monthly unique visitors. What is more important is that more than 50% of our traffic is organic with 60% of our customers coming to us from Tier 3 & Tier 4 geographies. Our customer cohort is improving as our services and offerings resonate with our target customer. Our NPS has jumped 16 points to 33 as of last quarter.
Innovate for Bharat
We believe that Bharat consumer cannot effectively be served by online means only. India is too big and too diverse to allow western style online expansion. To be successful we will have to be an interplay of technology, robust supply chain, operational efficiency, large distribution network & effective marketing.
To achieve the above in a cost-effective & scalable manner, we embarked on a journey of “externalized our capabilities” in three very important ways.
- We externalized our technology which led to the creation of our Enterprise Technology Solutions. Through which we serve mid-size & enterprise merchants to leverage our Omni-technology to expand their digital footprint.
- We externalized our operations which led to the creation of SmartShip & SmartOps. Through this, we provide merchants off ShopClues platform the ability to leverage our vast logistics and operations network to scale their business.
- We externalized our marketing which led to the creation of our social commerce platform EzoNow . This leverages our supply chain & logistics to enable thousands of reseller to use social media and other assisted eCommerce techniques to serve the Bharat customer in rural and tier 3 geographies.
ShopClues will continue to focus on Bharat customer by enabling the small & medium merchants to serve these customers. We will continue to build strong supply sources for our merchants, by our merchants and continue to build deeper distribution networks by leveraging online, social media & offline retail networks. A glimpse into ShopClues serving rural India, these offline stores leverage our supply chain & logistics but are owned and operated by our merchants: