Naaptol Online Shopping, the company that runs e-commerce portal Naaptol.com has raised $25 million (Rs 122.5 crore approx.) in an all cash funding round led by New Enterprise Associates (NEA), with participation from earlier investors Canaan Partners and Silicon Valley Bank, reports VC Circle. Following the funding, NEA’s Bala Deshpande will join the board of directors at Naaptol.com.
Naaptol intends to use the funds to hire more people, and for investing in its internet business, supply chain and inventory. It had started as an e-commerce site and diversified into home shopping with print ads and television shopping spots. It was part of the Times Private Treaties,using advertising inventory of the group’s publications in exchange for equity.
Naaptol had last raised Rs 33 crores from Canaan Partners in 2010, and had expanded its television presence to compete with home shopping networks such as STAR CJ and HomeShop18. At the time of its last funding, we had said that we on’t be surprised if it raises more funds in the coming year. The amount of funding indicates that it would intend to scale up to close the gap with other big home shopping players as well as e-commerce players like Flipkart and Letsbuy.
It follows a market-place like model and claims to have more than 500 stores and 470 brands selling products across various categories including mobiles, cameras, electronics, kitchen appliances, jewellery, apparel, books and others. It also sells products on other home shopping ventures including Indiatimes Shopping and HomeShop18.
The company had also recently launched a private sales site Naaptol Club offering deals on fashion apparels like denims, formals and accessories like sunglasses, watches and perfumes from different brands including Guess, Levi’s, Numero Uno, Puma, Revlon, claiming to offer an 80-90% discount.