NDTV’s e-commerce venture NDTV Ethnic Retail Limited (which operates Indianroots.in) has acquired 100% stake in JA Ethnic Retail private limited, the company has disclosed in its earnings results for the quarter ended December 31, 2013 (Q3-FY14).
NDTV says this acquisition happened on November 28, 2013, although it hasn’t disclosed any further details on the financial details or the the terms of the acquisition.
The details on what JA Ethnic Retail does is sparse as well: We couldn’t find any web presence for the company, although several company information listings suggest that JA Ethnic Retail belongs to the NDTV group itself. We are currently awaiting a response from NDTV for more details on JA Ethnic Retail and what it does.
NDTV’s e-commerce business reported revenues of Rs 2.31 crore for the quarter, up from Rs 52 lakh in the previous quarter which was its first operational quarter. The segment has reported a loss before tax of Rs 5.38 crore for the quarter, up from Rs 3.37 crore in the previous quarter. Note that these are however still very early days for NDTV’s e-commerce business, having launched in July last year.
Indianroots.in (which seems to have changed from its earlier .com avatar) currently focuses on Indian ethnic wear and claims to offer ethnic products from various brands like Anouk, Bombay Dyeing, Chhabra Bros, Little India, eCraftIndia, The India Craft House and others and designers like Anita Dongre, Sabyasachi Mukherjee, Raw Mango, Masab, Manoviraj Khosla, Rohit Bal and others.
Products offered include women’s apparel like sarees, lehengas, salwar kameez & kurtis and men’s apparel like sherwanis, kurta pyjamas & jackets. It also offers accessories like jewelry, bags, wraps and others along with home furnishing and stationery products. The site targets the Indian diaspora and offers shipping globally (More on that here).
In the previous quarter, NDTV had sold 13,769 shares in NDTV Ethnic Retail Ltd to Rathi Strategic Ventures for Rs 10 crore. Before that, NDTV subsidiaries NDTV Worldwide and NDTV Convergence had picked up 37.55% stake and 33.2% stake respectively in NDTV Ethnic Retail for a total consideration of Rs 4.2 lakhs in March 2013. The company had also roped in Fashion And You co-founder Rahul Narvekar to head its e-commerce operations last year.
Other players which are in this space include Utsav Fashion and Cbazaar. 99labels had launched an ethnic wear store 9rasa.com in October 2012, Info Edge had however written off its Rs 29.3 crore investment in 99Labels in March last year. Besides this, e-commerce stores like Myntra, Flipkart, Snapdeal and Jabong also offer ethnic wear.
Download – Financials