Canaan to buy 25% in Naaptol.com

MUMBAI: Venture capital fund Canaan Partners is set to acquire nearly 25% stake in country’s biggest online shopping web portal Naaptol.com for `40 crore. The deal, which is expected to be announced this week, will put the valuation of the Mumbai-based company at `160 crore, nearly 2.3 times of its sales last year. Canaan will scale up stake in future, said a banker familiar with the matter.

India’s largest e-commerce shopping website is expected to double its revenue to `140 crore this year. Founded by Manu Agarwal in 2008, it now registers 3,000 transactions a day and sells 500 brands.

Naaptol.com will use the fund to enter into TV shopping and expansion of its logistics footprint, said the person who did not wish to be named.

Canaan Partners is a global venture capital firm that invests in technology and healthcare companies. It has invested in e-commerce website Bharat Matrimony and entertainment website Chakpak Media.