Naaptol saw a 2.3 times rise in its revenue for the FY 14-15 as its revenue grew to INR 289 crores. The company is currently the third largest player in the digital commerce platform market with presence across TV, web and mobile.

Financial Performance of Naaptol

Naaptol reported a revenue of INR 289 crores against a loss of INR 43 crores. Last year’s revenue and PAT figures stood at INR 128 crores and INR 57 crores, respectively. This was revenue growth of 125% in the period.

Two largest expenses for the company were media and logistics expenses. The media expenses for the company stood at INR 148 crores while logistics expenses at INR 103 crores. Here is a breakup of the major expenses:

About Naaptol

Naaptol is owned and operated by Naaptol Online Shopping Pvt. Ltd. Founded by Manu Agarwal in 2008, it is a comparison based social shopping portal and is available through website, mobile app and TV channel Naaptol Blue. It competes in its segment with players like Shop CJ Live, Homeshop 18, DEN-Snapdeal TVShop among others. While Naaptol Blue is a Hindi language channel, it also has vernacular presence with separate channels in Tamil, Malyalam, Telugu and Kannada. Over the years the company has transformed from a price comparison site to be present across multiple channels.

The company has secured a total funding of INR 665 crores from various investors including Mitsui & Co., NEA FVCI Ltd.  and Canaan Partners. The latest round of funding was secured in October 2015 for INR 343 crores from Mitsui & Co.

The company competes closely with veteran players like Homeshop 18 and Shop CJ Alive, which have been operational for 10 and 8 years, respectively and new players like DEN-Snapdeal TV Shop (incorporated in February 2014) and Best Deal TV (incorporated in December 2014). Compared to Naaptol, FY 14-15 revenue figures for Homeshop 18 and Shop CJ Alive stood at INR 444 crores and INR 561 crores, respectively. The three companies hold a market share of about 85% in TV home shopping market.

In the Indian context, though internet penetration is increasing rapidly, TV as a medium still has a wider reach across India. According to Broadcast Audience Research Council, the estimated television audience stands at 153 million homes. The TV shopping market is mainly driven by the housewives. The industry is expected to reach INR 50,000 crores by 2020 and has attracted players like Snapdeal to have their presence in the medium.

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TV18 Home Shopping Network Limited, which owns and operates HomeShop18 has reported its latest revenue figures for FY 14-15. Total revenue figure stood at INR 450 crores compared to INR 368 crores in previous fiscal, registering a growth of 22%. The loss figures doubled from INR 84 crores in FY 13-14 to INR 175 crores FY 14-15.

Financial Performance

The revenue from operations stood at INR 444 crores which grew by 23% over the previous year. This is comprised of ‘Commission on sale of products’ (98%), ‘Reimbursement of freight and collection expenses’ (1%) and ‘Sponsorship income’ (1%).

The company’s expenses increased from INR 452 crores to INR 619 crores. The breakup of the expenses is as follows:

About HomeShop 18

HomeShop 18 is among the leading digital commerce platforms in the country. It has presence across TV, web and mobile. However, the TV channel contributed 99% to the company’s revenues in FY14-15. The company offers digital, clothing, lifestyle and appliances from over 1500 brands in the country and operates on a marketplace model. As per its Directors Report – The Company has a combined reach of around 250 million consumers and has placed over 33 million orders in the last seven years. They also claim to be one of the largest marketing & distribution platform for mobiles and digital cameras in the country.

How does HomeShop 18 fare compared to its peers

The biggest player in this segment is Shop CJ Alive (backed by Star India), followed by HomeShop 18 (backed by Network 18) and Naaptol, which initially started as an e-commerce platform. Combined together they hold 85% share of the television home shopping market. The following chart summarizes their past two years’ turnover figures:

Though HomeShop 18 was the first entrant among the three in 2006, its operations started in 2008 only. Naaptol (2008) and Shop CJ (2008) came around later. Other new entrants in the segment include Best Deal TV and Den Snapdeal TV.

Although the number of internet users in India is on the rise, TV still has the largest viewership and maximum reach as far as households are concerned. This fact has led a number of players to enter into the TV Home Shopping segment. In fact, Snapdeal partnered with Den to launch Den Snapdeal TV in September last year, and it is among the bigger TV shopping portals in India.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.