Naaptol raises Rs 343 crore from Japanese Conglomerate Mitsui
Home shopping and e-commerce firm Naaptol Online Shopping Pvt. Ltd has raised Rs.343 crore in a fresh round of equity funding from existing investor Japanese conglomerate Mitsui & Co., the company said in a statement on Tuesday.
The investment will increase Mitsui & Co’s stake in Naaptol to 20% from 5%. In April it had raised Rs.136 crore from Mitsui & Co, which has business interests ranging from metals and automobiles to finance, electronics and energy.
The company will use the funds to expand its reach and enhance supply chain and technology. “We are at an inflection point where transformational use of technology and expertise will define our future,” said Manu Agarwal, founder and chief executive officer. “We plan to expand more and more on to the regional side whether it is from media, content, product distribution or call centre perspective.” Founded in 2008,
Naaptol Offers services over multiple touch points including print, TV and web, and mobile app. It offers its services in nine languages. The company, which operates as an e-commerce website under the same name, also reaches to 160 million TV households in India on a daily basis. It plays over 350 hours of commercials every day in multiple languages.
The $20 billion Indian e-commerce market is growing rapidly and is expected to reach $300 billion in sales by 2030, according to a study by Goldman Sachs in May. Naaptol facilitates sales of products across categories like electronics, apparel, jewellery to home and lifestyle products and currently claims to process 20,000 orders a day.
According to Agarwal, the company generates over 60 million orders daily with an average ticket size of Rs.2,700.The company also has New Enterprise Associates (NEA), JP Morgan and Saama Capital as its investors. Overall the company has raised over Rs.700 crore in multiple rounds of funding so far. In 2011, Naaptol raised $25 million in a second round of funding led by NEA and did a top-up round of $7 million in 2013 from existing investors.
The company has over 500 employees and plans to hire 100 more in the next one year. The company locks horns in the television shopping space with firms such as HomeShop18 and StarCJ. In January, India’s second largest e-commerce firm Snapdeal also announced a joint venture with television distribution firm DEN to launch a television commerce channel DEN Snapdeal TV shop.