NDTV’s e-commerce business NDTV Ethnic Retail Limited, which operates ethnic apparel online store IndianRoots.in, has raised $5 million funding from KJS Group. The company claims that following this round of funding, IndianRoots is valued at $85 million. The funds will be used to scale up the platform’s logistics and delivery mechanisms and to invest in marketing activities. Last year, NDTV had mentioned that the company had spent an incubation cost of Rs 25 crore on the venture and was apparently in talks to raise capital through private placement.
IndianRoots, which was launched in July 2013, has posted losses for the past four quarters: Rs 9.99 crore in Q4-FY15, Rs 6.02 crore in Q3-FY15, Rs 3.16 crore in Q2-FY15, Rs 4.5 crore in Q1-FY15. NDTV Ethnic reported revenues of Rs 6.80 crore for the quarter ended March 31, 2015, as compared to revenues of Rs 3.50 crore in the same quarter last year and Rs 6.06 crore revenues in the previous quarter. It reported Gross Merchandise Value (GMV) of Rs 26 crore for the quarter, down marginally from Rs 29 crore GMV in the previous quarter. The company also mentioned that Average Order Value for FY15 was Rs 17,000, as compared to Rs 9,000 in FY14.
IndianRoots sells Indian ethnic wear, including women’s apparel such as 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, stationery products and handicraft products from local artisans. The company has tie-ups with close to 500 brands and designers, and it had also introduced custom tailoring. United States is the biggest market for the company followed by India. India accounted for 30% of the website’s traffic (as of August 2014).
NDTV Ethnic Retail had also acquired 100% stake in JA Ethnic Retail Private Limited, in November 2012.