Cable television distributor Den Networks Ltd said on Monday it has agreed to increase its stake in a TV shopping joint venture with e-tailer Snapdeal to 82.87% from 50%.
Den said in a stock-exchange filing that it will spend Rs 1 crore to purchase shares in Macro Commerce Pvt. Ltd from Jasper Infotech Pvt. Ltd, which runs Snapdeal, and Rs 5 crore to subscribe to new shares through a rights issue.
Macro Commerce was set up in 2014 to operate a shopping TV channel to sell branded and unbranded merchandise. Snapdeal and Den had initially taken an equal stake in the joint venture.
The channel, DEN Snapdeal TV Shop, was launched last year with an aim to create a multi-nodal electronic shopping avenue for customers. Snapdeal had said it would target potential customers in smaller cities and towns who might not have access to the Internet.
Macro Commerce reported turnover of Rs 28 crore for 2015-16 compared with Rs 3.17 crore the year before, according to Den’s filing.
Den Snapdeal TV competes with Network 18 Group's HomeShop18 as well as StarCJ and Naaptol shopping TV channels.
*This article has been updated to correct factual inaccuracies.
Like this report? Sign up for our daily newsletter to get our top reports.