Network 18 is moving towards a U.S. listing of its wholly owned online retail arm, HomeShop18 that could raise about $100 million.
The group is in talks with institutional investors, including private equity firms, to take up shares as part of the listing plan.
Sundeep Malhotra, Founder and Chief Executive of the company, said, "We have ambitions to get listed and are open to it but it is premature to talk about it now. We cannot give any timeframe on that at the moment.”
HomeShop18, with current revenue of 7.5 billion rupees ($142.13 million), sells everything from mobile phones, laptops and televisions sets to apparel and lifestyle products.It plans to set up warehouses with a size of 1 million square feet and is in the process of carrying out internal evaluations
Indian online retail firms are raising capital to position themselves for rapid growth of the country's fledgling $10 billion online commerce market as rising incomes and aspirations to own big brands at discounted rates push a time-constrained working middle class to shop from the comfort of their homes.
HomeShop18 raised $26 million from private equity fund SAIF Partners in two tranches and in 2009 it raised $18.5 million from South Korean home shopping retailer GS Home Shopping.
"We will focus on investments in technology and operational capabilities like a strong and efficient backend...We are hoping our business will be three times the current size in the very next year," Malhotra said.
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