India's HomeShop18 to buy Providence-backed Shop CJ

Network18 Media & Investments, which owns HomeShop18 among other media assets, said in a filing that the two businesses would combine to create the largest home-shopping platform in the country. Investors in Shop CJ will receive a 25% interest in HomeShop18, making the former a subsidiary of the latter. Network18 Media & Investments will be the largest shareholder in the combined entity.

It has not been disclosed whether Providence will exit its stake in Shop CJ, but the deal comes as the GP looks to scale back its business in India. It was announced in March that India head Biswajit Subramanian would leave the firm.

Shop CJ sells a range of electronics, kitchenware, household appliances, jewelry, and apparel through a 24-hour shopping channel and an online retail platform. The business was established in 2009 as a 50-50 joint venture between News Corporation’s Star India and CJ O Shopping, a subsidiary of Korea’s CJ Corporation. Providence bought Star India’s stake in 2014 for approximately $50 million.

HomeShop18 and Naaptol are Shop CJ’s only meaningful local competition. Following its launch in 2008 as a TV shopping channel, HomeShop18 has developed internet and mobile platforms as well, with a portfolio of more than 14 million stock keeping units (SKUs). It has a customer base of 21.5 million people as of March 2017, up from 17.9 million the previous year.

SAIF Partners and OCP Asia – as well as Korea’s GS Home Shopping – are investors in HomeShop18. Plans for a US IPO in 2014 were abandoned following volatility in the US markets and the acquisition of Network18 Media & Investments by Reliance Industries. According to the IPO filing, HomeShop18 generated $40.7 million in revenue in 2013 and a net loss of $25.8 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Trade sale
• Media
• India
• Providence Equity Partners
• SAIF Partners
• M&A