DEN Networks, Snapdeal to launch home shopping chnl

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In one big development multi system operator (MSO) DEN Networks has announced its joint venture with Jasper Infotech, the entity that owns and operates the digital commerce platform, Snapdeal.com.

As per this 50:50 joint venture, DEN Networks will set up a television channel to be used as a market place platform for facilitating the sale of branded and unbranded merchandise and services, including vouchers offered by third party sellers subject to necessary approvals.

The MSO is currently busy setting up its internet broadband services in all leading metros. And according to a PTI report, it has already invested close to Rs 250 crore in the project, which will offer the broadband services in Delhi, Mumbai, Kolkata, Chennai, Pune, Lucknow and Ahmedabad in the first stage.

Jasper Infotech currently offers a huge range of product categories, which include: mobiles and tablets; computers, laptops, and gaming; TVs, audio/video, and movies; cameras, lenses, and accessories; appliances; men and women clothing; footwear; sunglasses, bags, and accessories; watches; jewelry and gold coins; perfumes, beauty, and gifting; kitchen and home furnishing; sports, fitness, and health; kids toys, clothing, and baby care; learning, stationary, and hobbies; automotive; and furniture and fixtures through its online store.

It also operates 'Launchpad', an e-window that allows Indian innovators and inventors to list, market, and sell their products on the site; and capital assist that provides sellers on its platform with access to funding. Based in New Delhi, the company was founded in 2007.

DEN Networks to launch a TV channel | Indian Television Dot Com

 

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RE: DEN Networks to launch a TV channel

DEN Networks, Snapdeal float JV for a home shopping TV channel | TelevisionPost.com

MUMBAI: India’s premier cable TV distribution and e-commerce companies are joining hands to create a home shopping television channel, indicating how fast this segment of business is growing in a country that boasts a thriving middle-class and a huge young population. Sameer Manchanda promoted-DEN Networks and Snapdeal.com’s parent company Jasper Infotech are floating a joint-venture (JV) company with each holding 50 per cent share. The JV will launch a TV channel which will be used as a marketplace for facilitating the sale of branded and unbranded merchandise and services, including vouchers offered by third-party sellers. “We will apply for approval from the Foreign Investment Promotion Board (FIPB). The launch of the channel will not take long after we get the necessary approvals,” said a source in the company. Snapdeal, valued at $1 billion, has a rich roster of investors including eBay, Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital, Saama Capital, Blackrock, Temasek Holdings and PremjiInvest. Jasper Infotech is the entity which owns and operates the digital commerce platform Snapdeal.com. In May 2013, Goldman Sachs put in $100 million to take 17.8 per cent stake in DEN Networks, thus raising the valuation of the multi-system operator (MSO) to $618 million. In the JV, DEN and Jasper Infotech each will initially invest Rs 50 million. “A maximum investment of Rs 100 million each will be required in the venture. As Snapdeal has all the infrastructure, including backend, logistics and technology, the venture will not require much investments,” the source said. For DEN, there will be a brand rub-off by associating with Snapdeal. The e-commerce site is a huge consumer brand in India. Riding on the infrastructure of Snapdeal, the MSO will also not need to put in substantive investments. “We will get B2C branding, essential for us as we digitise our networks. With the Snapdeal infrastructure in place, it will be a low-investment model for us. They have the technology, payment gateways and call centres,” said a source in DEN Networks. For Snapdeal, the home shopping TV channel will provide another distribution outlet. It has already raised fresh capital of $100 million in May as it girds for competition with Flipkart and Amazon in India. The home shopping channel will be initially available in DEN-run cable networks. “After running the channel in our network, we will make it available to other MSOs,” said the DEN executive who did not wish to be named. DEN has a subscriber base of 13 million, out of which it has already seeded 6.5 million digital set-top boxes (STBs). “It is a win-win deal for both the companies. The important thing will be how much they can scale up in terms of transactions. In this space, we already have Homeshop18 and Star CJ Alive,” said a media analyst at a broking firm. Reliance Industries Ltd-controlled Homeshop18, the largest player in India, has filed for an initial public offering (IPO) to list on the New York Stock Exchange (NYSE). Meanwhile, Star CJ Alive has seen some change in shareholding with Star India exiting from the JV and private equity firm Providence stepping in. The other shareholder is a Korean company named CJ O Shopping Co. “Unlike Homeshop18 and Star CJ Alive, we will not have to invest in creating an infrastructure. By being an MSO, we are providing the distribution platform. Snapdeal has an existing infrastructure. So, there is not much requirement of fresh capital,” said the DEN executive. On their gross turnovers, home shopping channels enjoy a margin of 15–20 per cent. “The home shopping TV channel can break-even in the first year itself,” the DEN executive said. Rival MSO Hathway Cable & Datacom runs a shopping channel, Hathway Shopee, which is powered by Naaptol. The channel is available to Hathway subscribers. “We do not have an equity deal. We get carriage money,” said Hathway Cable & Datacom managing director and CEO Jagdish Kumar.

Read more at: DEN Networks, Snapdeal float JV for a home shopping TV channel | TelevisionPost.com | TelevisionPost.com