Intel, GE Capital to take 20% in Unilazer's TSN
Gurbir Singh
MUMBAI 15 DECEMBER
GE Capital and Intel are picking up a 15-20 per cent combined stake in Total Shopping Network (TSN). GE Cap and chipmaker Intel's venture capital arm will invest around $5 million each in the direct and Internet-based shopping network.
The deal is expected to be inked in 8-10 days, industry sources said. Two other venture funds, Walden Nikko and Draper International already hold a combined 45 per cent of TSN?s equity. Both the funds are also expected to hike their stake with a second round of infusion of funds.
TSN, a Unilazer Group company in which Ronnie Screwvala has a majority holding, launched its business-to-consumer Internet shopping portal recently called tsnshop.com.
The fresh injection of funds into TSN will finance the company?s internet strategies as well as its direct shopping network. Around 60 per cent of the funds will be earmarked for developing TSN?s shopping portal. These include both popularising Internet shopping as well as developing a wider range of products and a well-oiled distribution network. TSN is also in the process of setting up a 24-hour home shopping channel.
About 40 per cent of the new venture capital funds will be used to develop this satellite channel project. TSN currently has six-eight hours of shopping presentations spread over several entertainment channels.
Meanwhile, Unilazer Group officials confirmed to ET there would be some delay in UTV hitting the market with its initial public offering (IPO) as it was in the process of consolidating its varied operations into a single media entity. These include UTV?s software division in India, the Vijay TV Tamil broadcasting venture and the Singapore and Malaysian operations.
According to them, the IPO might be delayed till March next year. UTI had earlier announced that UTV would hit the market by January 15.
Most international venture capital funds homing in on Internet ventures and start-ups have earmarked huge budgets for Indian companies. Walden International, for instance, has budgeted $63 m for Indian ventures of its $1.2 bn global fund. Similarly, GE Capital has set aside $100m for Indian start-ups out of a $1 bn fund.
Intel, which has a $4.8 bn investment portfolio (on of the largest in the world) in such typical $10m-minority-shareholdings, invested $800m last year and expects to up it to $1 bn this year. Intel recently said Asia and India were strong thrust areas for investment.
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