Sports365 acquires online tennis store-Tennishub.in2 min read . Updated: 27 Nov 2015, 10:37 PM IST
Sports365 has also launched a new portal catering to running enthusiasts called Runninghub.in
New Delhi: Bangalore-based Pulse sport Pvt Ltd, which runs Sports365, an online store of sports goods and fitness equipment, has acquired Tennishub.in in an all-stock deal.
“The aim is to specialise in different verticals and cater to the specific set of audience in a more customized manner," said Chandra Sekhar Reddy, chief executive officer of Sports365.
Tennishub.in is an online tennis store founded by tennis player and olympian Vishnu Vardhan and sports entrepreneur Afroze Khan. The team of Tennishub will join Sports365. It consists of 18 employees.
Sports365 has also launched a new portal catering to running enthusiasts called Runninghub.in and plans to launch different segments for cycling and outdoor products in the next three months.
Runninghub.in will offer a selection of running shoes, apparel, running gear and nutrition-related products. It will also allow runners to interact with experts and get advice in real time.
Sports365 raised $1.5 million last year from US-based venture capital firm Zolon Ventures and Powerhouse Ventures.
It will close another $6 million in funding in six weeks, Sekhar said. The investors are likely going to be a venture capital funds and companies who are related to sports business, he said, declining to divulge names. The existing investors are also likely to participate.
It will spend over $4-5 million of this money into marketing and product development, including expansion of its range of private label products.
It currently sells apparel and accessories. It will expand it to three more categories including fitness. “There is a lack of brand availability in India which gives enough scope for us to launch and establish our brands," Sekhar said.
The company earns 35-40% margin on the sale of its private label products, which is 3-4 times larger than what it earns on selling products of other brands.
For marketing, it plans to continue with aggressive social media and re-targeting campaigns. It claims to be selling 25,000 products per month with an average ticket size of ₹ 1600-1700.
Besides this, it also gets its business from business-to-business channels such as supplying to schools, colleges and sports clubs, much like sports goods retailers. “Twenty percent of our overall revenue comes from bulk buying," said Sekhar.
The company clocked a revenue of ₹ 14.5 crore in 2014-15 and aims to close 2015-16 with ₹ 40 crore.
Besides Mahesh Bhupathi and his wife Lara Dutta, the company has cricketer Yuvraj Singh as its stakeholders.
While there aren’t many firms in the sports category in India, the company locks horns with general merchandiser such as Snapdeal and Flipkart, who sell sports and fitness categories on their platforms.
Sports365 also uses the platforms of these companies to sell a select range of its products.