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NDTV reports net loss of Rs 24 crore in Q1, raises funding at combined valuation of $80 million for new e-commerce ventures

07-August-2015
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NDTV reports net loss of Rs 24 crore in Q1, raises funding at combined valuation of $80 million for new e-commerce ventures

NDTV recently released its Q1FY16 reports. Over the past quarter the television network has consolidated its transition to a digital media company from a pure television play by moving further into the e-commerce space.

In a first round of investor funding, NDTV raised funding at a combined valuation close to $80 million for its new e-commerce ventures in Gadgets and Car and Bike. The investors included Inflexionpoint, Pramod Bhasin, Sixth Sense Ventures, Vindi Banga, Hiro Mashita and other HNIs. This follows the success of NDTV's earlier venture, IndianRoots which raised an additional $5 million in funding at a valuation of $85 million from KJS Group. The funds were raised by Avendus Wealth Management. IndianRoots has clocked a GMV of Rs 21.7 crore this quarter, a growth of 550 per cent over the same quarter last year.

Of the new e-commerce ventures, Gadgets 360° (currently known as NDTV Gadgets) will provide a curated marketplace for exclusive launches of mobile phones and other electronic gadgets. It is now valued close to $50 million.

Fifth Gear Auto is a new auto portal leveraging on the massive following of NDTVs car and bike programming. The current auto site has become one of the fastest growing auto portals since its launch, a little over a year ago. The venture has raised funds close to a valuation of USD 30 million.

NDTV's foundation in the digital space, ndtv.com now has 65 million users in India and across the world, clocking a growth of 40 per cent YoY.

Digital and e-commerce revenues account for 21 per cent of total group topline (up from 13 per cent in the same period last year) reflecting the ongoing commitment and investments of the NDTV Group into building key digital assets.

The same quarter last year had clocked exceptionally higher TV advertising revenue due to General Elections 2014. If excluding the revenues specific to elections, there is no decline in revenues for NDTV.

Ndtv.com and related digital businesses showed a revenue growth of 51 per cent YoY.

Fashion retail venture, IndianRoots achieved a GMV (Gross Sales based on order book) of Rs 21.7 crore versus a GMV of Rs 3.3 crore in the same quarter last year. Net revenue achieved is Rs 6 crore, with a loss of Rs 11 crore for Q1, FY 2015-16.

While NDTV continues to concentrate of the e-commerce sector, the group has reported a net loss of Rs 24 core in Q1, FY 2015-16, of which Rs 11 crore pertains to e commerce businesses.

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