Network18‘s home shopping retailer, HomeShop18 has raised Rs 100 crore from existing investors SAIF Partners, Network18 and GS Shopping, reports VC Circle. The company intends to raise an additional Rs 200 crore, for which it is already in talks with some investors, according to the report. It cites two people with direct knowledge of the development as its source. However it could not verify the same from Network18. HomeShop18 intends to use the raised amount to invest in technology, new warehouse facilities and in improving its logistics network.
The company runs an e-commerce store and a 24 hour home shopping tv channel, and claims to have a user base of 2.5 million. HomeShop18 had previously raised $18.5 million from South Korean home shopping retailer GS Home Shopping, with an additional investment of $5 million put in by parent company Network18.
The company faces competition from Star CJ Network India, a 50:50 joint venture between News Corp owned STAR India and another Korean company, CJ Home Shopping. Star CJ had launched its own teleshopping channel, last year.
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.