Digital's Share Of NDTV Revenues Jumps From 13% To 21%
NDTV further consolidates 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 has raised funding at a combined valuation close to 80 million USD for its new ecommerce ventures in Gadgets and Car & Bike. The investors include: Inflexionpoint (Cofounded by John Scully, former Apple CEO), Pramod Bhasin (Founder, Genpact), Sixth Sense Ventures (Founded by Nikhil Vora) Vindi Banga (Former Chairman, Unilever), Hiro Mashita (Founder and Director of M&S Partners) and other HNIs.
This follows the success of NDTV's earlier venture, IndianRoots which raised an additional 5 million USD in funding at a valuation of 85 million USD from KJS Group. The funds were raised by Avendus Wealth Management. IndianRoots has clocked a GMV of Rs 21.7 Cr this quarter, a growth of 550% over the same quarter last year.
NDTV's foundation in the digital space ndtv.com grows from strength to strength and is now India's leading pure news site with 65 million users in India and across the world, clocking a growth of 40% YOY.
Digital and e-commerce revenues now account for 21% of total group topline (up from 13% in the same period last year) reflecting the ongoing commitment and investments of the NDTV Group into building key digital assets.
NEW E-COMMERCE BUSINESSES
- Gadgets 360° will provide a curated marketplace for exclusive launches of mobile phones and other electronic gadgets. Gadgets 360° (currently known as NDTV Gadgets) is India’s most viewed gadgets portal with over 20m unique visitors every month. Gadgets 360 is now valued close to 50 million USD.
- Fifth Gear Auto is a new auto portal leveraging on the massive following of NDTVs car and bike programming. The current auto site has proven the credibility of the brand in this space, having 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 30 million USD.
TV & ALLIED BUSINESS
The same quarter last year had clocked exceptionally higher TV advertising revenue due to General Elections 2014. If we exclude the revenues specific to elections, there is no decline in revenues.
Ndtv.com and related digital businesses showed a revenue growth of 51% YOY.
IndianRoots achieved a GMV (Gross Sales based on order book) of Rs. 21.7 cr versus a GMV of Rs. 3.3 cr in the same quarter last year. Net revenue achieved is Rs. 6 cr, with a loss of Rs. 11 cr for Q1, FY 2015-16.
NDTV as a group reported a net loss of Rs. 24 Cr in Q1, FY 2015-16, of which Rs. 11 Cr pertains to e commerce businesses.