Investors unwilling to buy Jabong for $500mn, say it's worth only half as much!

While other e-tailers are doing well and making most of the festive period, Jabong's sale has declined and its financial performance is also not up to the mark, sliding continuously for the past few months. Nobody is interested in buying the company at higher valuation tag.

Sources close to the matter told TOI, the online retailer was put on block by its investors with a $500-million valuation tag.

Interested buyers were not ready to shell out over $250-300 million for Jabong, part of Global Fashion Group (GFG).

Moreover, out of the five founding members of Jabong, four have already left the company. The company's losses, for the first six months of 2015, jumped by over 46% to Rs 227.4 crore compared to almost Rs 155 crore a year ago.

Paytm and Snapdeal both were interested to buy Jabong but the payments services firm has logged out of the race.

It was said that Paytm was not willing to put more than $200-225 million for Jabong, once considered to be a direct rival to Myntra, acquired by Flipkart.

(Image: Indiatimes)