HomeShop18 sells 15% stake to Korean company for $18.5 million
November 13, 2009
HomeShop18, India’s first 24-hour home shopping channel, has announced that it has raised $23.5 million or about Rs109 crore as growth capital to fund exceptional growth and rapid expansion of its business.
Korea's GS Home Shopping, earlier known as LG Home Shopping, the world’s 3rd largest home shopping network, bought a 15% stake in HomeShop18, for $18.5 million or about Rs86 crore. Network18 Holdings, a wholly-owned subsidiary of Network18 Media and Investments, will also invest about $5 million or around Rs23 crore in HomeShop18.
The two companies have entered into a strategic co-operation agreement under which GS Home Shopping will lend its expertise in the area 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.