Homeshop18 raises fresh $14 million funding from existing investors
By Prathamesh Patil
Network18 Group’s online retail marketing venture HomeShop18 has closed a $14 million follow-on funding from Korean Home Shopping Major GS, OCP Asia & Network18. GS will invest $11 Million; OCP Asia & Network18 will invest the remaining amount.
The transaction values HomeShop18 at $360 Million.
Network18 will remain the majority shareholder (51%) in HomeShop18. SAIF Partners, GS Home Shopping and OCP Asia are the other existing investors at HomeShop18. GS is the third largest Home Shopping company in the world and the market leader in Korea.
Huh Tae Soo, CEO and President, GS Home Shopping said, “We are delighted to invest further in HomeShop18, India’s leading virtual commerce company. We believe that HomeShop18 is well positioned to capitalize on the Indian consumer opportunity and we look forward to supporting the company with our global experience. ”
Funding Timeline:
– 2006 : $21million maiden funding from SAIF Partners for 25% stake in the retail venture-
– 2008 : $16million from SAIF Partners & $5 from Network18’s venture capital arm Capital18
– 2009 : GS Home Shopping invested $18.5 million for strategic stake & Network18 Holdings invested another $5 million.
– 2011 : SAIF Partners Fund & GS Home Shopping pumped in another $23million
– 2013 : $15million from OCP Asia & $15 from Networ18
– 2013 : $14million from GS Home Shopping, OCP Asia & Network18
It acquired startup Coinjoos.com in 2011 to supplement its product categories with books
HomeShop18 launched India’s first 24 hour Home Shopping TV channel in 2008. It provides an integrated virtual shopping experience on Internet, Television and Mobile through HomeShop18.com and the 24×7 TV channel. Since inception, HomeShop18 has acquired a customer base of 7.5 Million. It has built an impressive portfolio of over 12 million SKUs across multiple product categories and a logistical reach of over 3,000 locations across India. Homeshop18 is one of India’s fastest growing virtual commerce companies with revenues having more than doubled over the last year.
“This round marks an inflexion point for the business as the company rapidly moves towards profitability while continuing to scale up revenues. It is gratifying to see the vote of confidence in our business model from GS and the continued support of OCP and our Promoter, Network18.” Sundeep Malhotra, CEO, HomeShop18.
BMR Advisors acted as transaction advisors to TV18 Home Shopping Network Ltd.
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