The cable service provider DEN Networks is exiting from TV commerce business to focus on cable and broadband segments by selling its entire stake in Macro Commerce Pvt Ltd.
“DEN Networks has entered into a share purchase agreement with Pimex Broadcast Pvt Ltd for selling its entire stake in Macro Commerce on a going concern basis. With this sale, the cable network will now be focusing on the cable and broadband industry,” according to the media report.
Pimex will hold 100 per cent shares of Macro. It will take over all the existing liabilities and dues of Macro, it added.
The name of DEN and Snapdeal will be dropped from the TV commerce business’ branding.
The partnership between DEN and Snapdeal, which happened in the beginning of 2015, came to an end in March this year when the ecommerce player decided to exit from its teleshopping business- Den- Snapdeal TV Shop and divest its 17.3% stake to complete the exit process in a few months.
Last year, within a few months of the launch, Den Snapdeal TV spread its reach to around 30 million households and claimed to process over 90,000 orders a month, according to the media report.
The joint venture then aspired to grab over 40 per cent of the Rs 1,300 crore market (commissions revenue basis) and reach a Rs 500 crore turnover mark from TV commerce.
According to industry estimates, TV commerce processes Rs 15-20 crore worth orders in a day, and the market size stands close to Rs 1,300-1500 crore on a commissions revenue basis with a growth rate of 60-70 per cent annually.
Den Snapdeal TV – a joint venture between DEN Networks and Jasper Infotech, the holding company of e-commerce major Snapdeal – competed with HomeShop18, Shop CJ and Naaptol shopping TV channels.
HomeShop18 is leading the industry followed by StarCJ and Naaptol.
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