 "Rocket Internet's Global Fashion Group raises 300 mn euros")
Berlin-based Rocket Internet released its financials and with it declared the numbers for some of its ‘high performing’ firms, of which Indian fashion e-commerce entity Jabong was one.
Based in the National Capital Region, the company has for the first time made a gross profit, a shade over $220,000, in the year's first quarter, against a a loss of $1.7 million in the corresponding period last year. The company, however, made a loss of $13.3 mn on operating earnings in the quarter.
In FY15, Jabong had a net revenue of $122.3 mn and if the revenue continues to grow as the quarter growth shows, it might make a loss which is less than the $66 mn in FY15.
Gross Merchandise Value in the current quarter saw an 8.4 per cent increase, with the company doing business worth $61.1 mn. It had 2.6 mn successful orders on the portal, up from 2.1 mn in the corresponding quarter last year.
It had said it would bring more focus on premium brands and shed low-margin products. And, to begin phasing out discounts. This is a pattern its biggest competitors, Flipkart-owned Myntra and Voonik, also seem to be following.
The firm had been in the news when its holding company saw its valuation dip dramatically. Back in 2014, Jabong had been merged with four international fashion portals, valued collectively at $2.7 billion. A year after, the combine raised about $330 mn at a valuation of $1 bn. Jabong’s valuation, too, had slid from about $340 mn in 2013. It tried to revamp its leadership structure by appointing a new chief executive, Sanjeev Mohanty from Benetton, after founder Praveen Sinha exited.
Jabong also appointed a new operations head, Muralikrishnan B, from IndiaProperty, and a new business officer, Rahul Taneja, whom it poached from Snapdeal.
