Umair MohammadApr 03, 2014 18:18:07 IST
Indian e-commerce site, HomeShop18 has filed for IPO on NASDAQ, as reported by NextBigWhat. It must be noted that bigger rivals such as Snapdeal and Flipkart have also been mulling an IPO, but are yet to do the same.
The company started off by launching its very own TV channel in April 2008 and moved to e-commerce domain by launching its website in 2011. In 2013, the company went a step further by releasing Android and iOS app for their customers. It has a history of successful fund raising rounds such as a $26 million round in 2008, a $18.5 million round in 2009, and finally a $14 million funding in October last year.
Thanks to the improving internet services in India, online buying market has seen a tremendous boom, with consolidation on the cards for many smaller players. With a population of nearly 200 million to cater to and a growing user base, the e-commerce industry is set to reach unprecedented heights in the country.
Some details that have emerged from the IPO filing have revealed the main areas of growth for HomeShop18. The retailer makes four times more revenue through its TV channel than the website. Lifestyle goods and digital devices make up almost 74 percent of all items sold with books being the lowest selling category accounting for a mere 3 percent of all goods sold. About 8.9 million customers have bought items through Homeshop18. As a result, its total revenue amounts to $51 million (for the year ending September 2013). The company has generated revenues of $62.6 million, $108.5 million, $166.5 million during the previous three years respectively.
HomeShop 18 will be the fourth internet company from India to get listed on NASDAQ. According to Techcrunch, the three other Indian firms to have achieved the same are Rediff, MakeMyTrip and Sify.
Disclaimer: HomeShop18 is owned by Network18 which is also the publisher of Tech2.
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