In a latest example of global investors investing in Indian online retailers, Japanese trading firm Mitsui & Co, has reportedly invested Rs 136 crore in Naaptol Online Shopping, which owns and operates TV shopping and ecommerce platform Naaptol.com.
The funds will be used for the firms expansion plans. “We are already in 24/7 format across languages, and in this fiscal, we hope to be the largest home shopping network in India,” Manu Agarwal, founder and chief executive of Naaptol, was quoted as saying.
While Naptol.com did not disclose exact stake sold to Mitsui, dilution is believed to be in single-digit percentage points. Investment bank Jefferies India was the financial adviser in the transaction.Reportedly, Naaptol is targeting commission revenue – which is net revenue, not gross – ofRs 530 crore for fiscal 2016, a 54% increase over its 2014-15 revenue. “We’re not losing a significant amount of money, and expect to get into profitability by the end of this (financial) year,” added Aggarwal.
Prior to the latest round of funding, Naaptol had raised $38.5 million from its existing investors. Institutional investors now hold a majority stake in the seven-year-old company, which sells a variety of products, including apparel, consumer electronics, home furnishings and kitchen appliances.
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