HomeShop18 raises Rs 109 cr for expansion

HomeShop18, India’s first 24 hour home shopping channel, announced that it has raised $23.5 million (approx. Rs 109 crore) as growth capital to fund the exceptional growth and rapid expansion of its business.

GS Home Shopping (earlier known as LG Home Shopping and the world’s 3rd largest home shopping network) will invest $18.5 million (Rs 86 crore) while Network18 Holdings (a wholly owned subsidiary of Network18 Media & Investments) will invest the remaining $5 million (Rs 23 crore).

GS Home Shopping, post the investment, will hold a 15 per cent equity stake in HomeShop18. Network18 will remain the majority shareholder in HomeShop18 with a 51 per cent equity stake on a fully diluted basis.

 

The two companies have entered into a strategic co-operation agreement under which GS Home Shopping will lend its expertise in the areas of sourcing, merchandising, broadcasting and logistics to scale the HomeShop18 business in India. This will be facilitated by way of seconding key employees to HomeShop18 as well as training of HomeShop18 employees in Korea.