Homeshop18, has closed USD 14 Mn in a new round of funding led by existing investors Korean home shopping major, GS Home Shopping (GS), OCP Asia Ltd (OCP Asia) and Network18. GS is investing USD 11 Mn while OCP Asia and Network18 will invest the remaining amount.
The new funding comes in few months after OCP Asia Ltd. (OCP Asia), along with Network18 had invested USD 30 Mn in the company. At that time both Network18 and OCP Asia had invested USD 15 Mn each in the company which valued Homeshop18 at USD 330 Mn. The new funding will now value HomeShop18 at USD 360 Mn.
Network18 will remain the majority shareholder with 51% stake in HomeShop18.
Previously, Homeshop18 had raised USD 18.6 Mn in funding from investors including SAIF partners in July 2012. Prior to that in 2009, GS Home Shopping, along-with Network18 had injected USD 23.5 Mn in Homeshop18.
Since its launch, HomeShop18 has acquired a customer base of 7.5 Mn with a portfolio of over 12 Mn SKUs across multiple product categories and has reached over 3,000 locations across India.
Speaking about the investment, Sundeep Malhotra, CEO, HomeShop18 said, “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.”
HomeShop18 is the online teleshopping arm of Network 18. Network 18 had launched the eCommerce store in 2011, after launching the 24 hrs T.V Channel in 2008. Today, it provides an integrated virtual shopping experience on the Internet, television and mobile through these platforms.
BMR Advisors acted as transaction advisors to the company.
Recently, multi-channel retailer TVC Skyshop which works on a similar model as of Homeshop18, had also raised INR 42 Crore in a funding round led by Morpheus Fund.
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