NEW Delhi – With e-commerce and TV shopping gaining traction in India, Naaptol Online Shopping Pvt. Ltd. is looking to expand further by leveraging partner Mitsui & Co.’s experience in home shopping, top company officials say.
“Our TV shopping business currently attends around 200,000 calls a day from potential customers across the country, which translates into daily transactions worth 100 million rupees ($1.5 million), making it the No. 1 home shopping company in India,” said Manu Agarwal, CEO and founder of Naaptol, which runs the online and tele-shopping platform Naaptol.com.
This is “thanks to the valuable inputs provided by our partner Mitsui, which has over two decades of experience in the TV shopping business,” Agarwal said, adding that it wants to strengthen its leadership position in the local market, which is growing rapidly.
Mitsui, which runs shopping channel QVC Japan, acquired a 25 percent equity stake in the Indian company in 2015 to tap opportunities in TV shopping outside Japan.
“We have introduced the TV shopping model in India that we have adopted in Japan,” senior Mitsui & Co. India Pvt. Ltd. official Toru Suzuki said in New Delhi.
“After our investments made last year in Naaptol, it became No. 1 in terms of sales revenue.”
According to Naaptol’s CEO, the 8-year-old company generated 530 million rupees (almost $8 million) in revenue in fiscal 2015 ended last March, up from 160 million rupees ($2.3 million) two years before. It now aims to turn profitable next year by taking advantage of rising transaction values and by bringing more efficiency to its operations.
The e-commerce market in India is expected to touch the $38 billion mark in 2016, a 65 percent jump over the $23 billion in 2015, according to the Associated Chamber of Commerce and Industry of India, while some industry estimates peg the current TV shopping market at more than $200 million.