Jabong, the fashion ecommerce company in order to remain sustainable gets additional funding by Global Fashion Group (GFG) for one more year. GFG, founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE, operates ecommerce ventures Dafiti in Latin America, Lamoda in Russia and the CIS, Namshi in the Middle East, Zalora in Southeast Asia and Australia and Jabong in India. According to reports, the board has agreed to put more than $20 million in Jabong.
Even after Oliver Samwer, CEO of Rocket Internet and deputy chairman at GFG, was not in favour of continuing the India venture, Kinnevik insisted on staying put and the board eventually agreed to back Jabong. Jabong receives funds on a regular basis, similar to the financing structure of other multinational corporations.
As per details, GFG has raised over $1.5 billion in capital in its history and its Board remains unanimously committed to all regions it operates in, including India. Jabong has made a number of recent senior management hires and has also recently witnessed record operating performance. These facts, which are supported by public filings on the current investment rate, are clearly evident of GFG's commitment to growing Jabong.
GFG appointed Sanjeev Mohanty as CEO and Managing Director of Jabong, effective early December.
Jabong competes with Flipkart-owned Myntra, Snapdeal and Amazon in India's online fashion retail space. Its five founders have either left or were replaced in a management churn last year.
There have been reports that Rocket Internet has been in talks with top ecommerce companies including Amazon, Paytm and Snapdeal to sell Xerion Retail, the unit that operates Jabong. Xerion Retail crossed the Rs 1,000 crore sales mark in the year ended March 2015, as its net loss widened to Rs 43.6 crore from Rs 16.6 crore a year earlier.