Update: Network18 sources have confirmed to MediaNama that the deal is done. We’re still awaiting an official confirmation.
You’re reading it here first: Online retailer CoinJoos.com is being acquired by TV and online commerce company HomeShop18, MediaNama has learnt from multiple, reliable HomeShop18 sources. Calls and an SMS query to Narasimha Jayakumar, Business Head (E-commerce) at HomeShop18, had not elicited a response at the time of filing this report, and we’re awaiting a response from a HomeShop18 spokesperson. CoinJoos was launched in November 2009 by OnGraph Technologies, and allows users to trade their books, movies and/or music for coins (virtual currency) and buy other products in exchange. HomeShop18 already retails books as a part of its e-commerce business.
OnGraph also owns a social deals website called YouHaveDeal.com, but from what we understand, only CoinJoos is being acquired. OnGraph founder Nitin Gupta is travelling abroad and was also unavailable for a confirmation.
Homeshop18 had been focusing on expanding its e-commerce business, and has recently revamped its online portal. The company has a strong logistics network and claims to deliver to more than 2750 locations in India. Our sources also said that it has expanded stocking to 30 more cities, which will enable it to carry out speedier and more reliable deliveries.
HomeShop18 is something of an out-performer in the Network18 group of companies. According to Network18′s financial report for the Q4 FY11, the company’s revenues increased from Rs 51 crore that it registered in FY2009-10 to Rs 71 crore in FY2010-11. Although, HomeShop18′s quarterly revenues in Q3FY11 touched Rs 17 crore, they declined to Rs 13 crore in the quarter ended 31st March 2011. According to the company, orders executed during 2010-11 grew by more than 33% and 1000 new products were launched. HomeShop18 is reportedly raising Rs 100 crore from existing investors SAIF Partners, Network18 and GS Shopping.
(By Anupam Saxena and Nikhil Pahwa)