Private equity firm Morpheus Fund, has invested INR 42 crore in multi-channel virtual retailer, TVC Skyshop, for an 8% stake. After this investment TVC Skyshop is now valued at an around INR 500 crore.
It will be using the funds to expand its business and increase brand awareness among the people.
“Given the large market opportunity, the industry reaching an inflexion point and TVC’s strengths,there is room for immense shareholder value creation here,” said, Balu Nayar, MD, Morpheus Capital Advisors.
The company focuses on two lines of product i.e. consumer electronics and herbal products. Currently it caters to about 5 million customers and generated a revenue of INR 69 crore for the quarter end March 30.
The company markets and distributes its own brand products and is currently delivering in around 3,500 towns in India.
The company had previously raised undisclosed amount of funds from Samara Capital in 2008 and Samara Capital holds a 22% stake in the company.
TVC Skyshop was launched in 2000 by Vinod Agarwal, it is a multi-channel direct to consumer virtual retailer, selling products through various platforms including print media, direct response television, Internet and catalogue. It directly competes with Network18 owned Homeshop18, which had also recently raised USD 30 million in funding from OCP Asia Limited and Network18.
Morpheus Fund is a INR 425-crore fund had invested in 2 companies since its launch in 2011, which includes Ahmedabad-based Shelter Pharma and IPSA Labs.
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