Luxury TV maker VU to raise Rs 150cr in 2 yrs from PEs

Firm has tied up with Flipkart to sell its high-end televisions costing up to Rs 9 lakh

Television maker VU Technologies is planning to raise Rs 150 crore over the next two years to support expansion. “We will be raising funds, initially about Rs 50 crore and then up to Rs 150 crore over two years,” said Devita Saraf, chief executive officer and design head, VU Technologies. The founding shareholders may dilute 20 per cent equity to financial investors in the process. The company has started discussions with private equity players. Promoted by the Mumbai-based Saraf family, which also owns Zenith Computers, VU Technologies expects to close the current financial year with Rs 100-crore revenue. VU Technologies focusses on television sets, but has a strong presence in corporate video conferencing. It is also working on audio products for televisions.

The company has an exclusive tie-up with India’s largest online marketplace Flipkart to sell high-end televisions priced up to Rs 9 lakh. VU technologies sells about 55 per cent online. “We are creating a space for affordable luxury television. We stay away from traditional advertisements, and it is more of a digital push for us,” said Saraf.

VU technologies also sells its products through major retail chains. “We’ll be increasing our retail footprint with more experience zones,” Saraf said.

The company is developing television sets and other display products on the Windows operating system and these will hit the market soon.

To expand its target consumer segment, VU technologies has launched small television sets starting from Rs 9,000. Its television sets ranging from 19 inches to 40 inches and priced Rs 9,000 to Rs 9 lakh will be sold on Flipkart from March.