HomeShop18 Applies for a $75 million IPO at NASDAQ.
HomeShop18, and Indian e-commerce site, Has been recently reported on filing for an IPO on NASDAQ. It should be noted down, that its better rivals such as Flipkart and Snapdeal have also begun to think on filing for an IPO, but have as of yet to do so.
The company had begun its first launching with its very own TV channel during April 2008 and moved into the e-commerce market by launching its website during 2011. In 2013, the company had decided to take a stop further by releasing its own application for customers on the Android and iOS operating systems. The company has had a history of successful fund raising rounds such as the $26 million round in 2008, and $18.5 million round during 2009, and lastly a $14 million funding during October of last year.
With the recent improvements done to India’s internet service, online purchasing markets have become a enormous boom, with consolidation on the cards for many smaller business. With a population estimating around 200 million to cater for and a growing user base, the e-commerce industry has been set to reach unprecedented heights in the century.
Bits of details that have managed to leak from the IPO filing has revealed the main areas of growth for HomesShop18. The retailer makes over four times the revenue through its TV channel than the website. Lifestyle goods and digital devices make up to 74 percent of all items sold with books being their most lowest selling category, only making up a mere 3 percent of the margin. Around 8.9 million customers have purchased items through HomeShop18. As of result, the total revenue has amounted to $51 million, for the ending year of September 2013. The company has generated revenues of up to $62.6 million, $108.5 million, $166.5 million during the previous three years respectively.
HomeShop18 will become the fourth internet company from India to be listed on NASDAQ, according to Techcrunch. The three other Indian firms have to achieved the same success are MakeMyTirp, Sify and Rediff.