Sundeep Malhotra, CEO, Home Shop18 told FE, Home Shop 18has raised $23.5 million as growth capital to fund the exceptional growth and rapid expansion of its business. GS Home Shopping earlier known as LG Home Shopping has invested $18.5 million while Network18 Holdings Ltd, which is a wholly-owned subsidiary of Network18 Mediaand Investments Ltd, has pumped in $5 million.
Network18, the parent company, will remain the majority shareholder in Home Shop18 with 51% stake whereas SAIF Partners, a private equity firm that provides growth capital to companies in Asia, has 31% stake.
The remaining 3% will be held with the employees in the form of employee stock options.
Haresh Chawla, group CEO, Network18, said, We set up the business in April 2007 with SAIF Partners, which has been pioneering investors in home shopping in India and China, as an anchor investor. It is gratifying to see that one of the worlds largest home shopping companies has come on board as a strategic partner.
Tae Soo Huh, CEO and president, GS Home Shopping, said, Both HomeShop18 and GS Home Shopping are the pioneers of integrating media and retail in their respective countries and this partnership will be truly formidable. We aim to employ a collaborative approach to grow the home shopping segment in India with the HomeShop18 management team.