E-commerce firm HomeShop18 raises $14 million

GS Home Shopping will invest $11 Million while OCP Asia Ltd and Network18 will invest the remaining amount of $3 million

E-commerce firm HomeShop18 today said it has closed $14 million (approx Rs 85 crore) follow-on funding round with South Korea's GS Home Shopping (GS), hedge fund OCP Asia Ltd and its promoter Network18.

GS will invest $11 Million while OCP Asia and Network18 will invest the remaining amount of $3 million, the company said in a BSE filing.

In April this year, Homeshop18 had announced that Network18 and OCP Asia will invest $15 million each - totalling about Rs 164 crore - in the company.

Commenting on the transaction, HomeShop18 CEO Sundeep Malhotra said: "This round marks an inflexion point for the business as the company rapidly moves towards profitability while continuing to scale up revenues."

The transaction values HomeShop18 at $360 million (approx Rs 2,200 crore), the company said.

BMR Advisors acted as transaction advisors to the company.

Network18 will remain the majority shareholder (51%) in HomeShop18. SAIF Partners, GS Home Shopping and OCP Asia are the other existing investors at HomeShop18. GS is the third largest Home Shopping company in the world and the market leader in Korea.

HomeShop18 launched India's first 24 hour Home Shopping TV channel in 2008.