Homedel.com sells 50% of its stake

BANGALORE: The promoter of Bangalore-based Homedel (www.homedel.com), the

e-commerce site that vends food products, has sold 50 per cent of his stake in

the company for an initial investment of Rs 5 lakhs and a regular infusion of

funds for the next three years. The three-member private investors will invest

Rs 2 lakhs every month for the next three years. Homedel promoter Pritam Shetty

had started his Web site in October 1999 with an investment of Rs 3 lakhs.

Mr Shetty refused to reveal the names of the investors who have bought 50 per

cent stake in the company. He, however, added that at the end of two years, if

he was unable to invest an equal amount in the company by the end of two years,

the private investors would have the right to increase their stake to 80 per

cent.

Explaining the deal, Mr Shetty said, "I am really glad about this deal,

money has come in at the right time. The only problem that Homedel ever had was

money. We are also looking at expanding our network to other cities in the

country." The site is currently being redesigned and more features like

pictures of the products will be added to the site. Homedel is also opening a

godown in Koramangla for the proximity to potential areas.

Homedel has tied up with Nilgiri’s Dairy Farm Ltd. for its dairy products

and with Coke for its cool drinks. Mr Shetty said that Coke would also carry the

Homedel name on all its delivery vans in Bangalore.