Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Berlin-headquartered company <a href="http://www.businessinsider.in/Rocket-Internets-selling-2-really-big-online-brands-to-the-Future-Group/articleshow/51120395.cms">Rocket Internet</a> has invested a funding of 300 million euros (about Rs 2,282 crore) in Global Fashion Group (GFG), the parent company of online fashion portal Jabong. 
 
The German start-up investor will underwrite around 100 million euros (about Rs 760.7 crore), and will invest around 85 million euros (about Rs 646.7 crore), which would include the conversion of an existing investment at the terms of the financing. 
 For this transaction, GFG was valued at 1 billion euros post the transactions, said a <keyword id="834871" type="UNKNOWN" weightage="100" keywordseo="Rocket-Internet">Rocket Internet</keyword> statement. 
 
"The financing will provide GFG with the necessary capital to continue to execute its strategy of building out its leading position in the online fashion sector in emerging markets," GFG Chief Executive Officer Romain Voog said. 
 
In the first quarter of 2016, GFG has meaningfully reduced losses from operations as compared to period a year ago, which has very well resulted in it seeing an improvement of the adjusted EBITDA margin by over 10 percentage points. 
 
"This is in line with GFG's plan to deliver an accelerated path to profitability across its regional businesses while continuing to capture the significant market opportunity available," Voog said. 
 
Also read: <a href="http://www.businessinsider.in/Investors-unwilling-to-buy-Jabong-for-500mn-say-its-worth-only-half-as-much/articleshow/49465326.cms">Investors unwilling to buy Jabong for $500mn, say it's worth only half as much!</a> 
 
GFG, which was founded in 2014, combines six regional brands all across the world, viz. Dafiti in Latin America, Lamoda in Russia and CIS, Namshi in the Middle East, The Iconic in Australia, <a href="http://www.businessinsider.in/Jabong-has-no-buyers-not-even-at-the-unbelievably-low-price-of-Rs-663-crore/articleshow/51839070.cms">Jabong in India</a> and Zalora in South-East Asia. 
 
"We continue to be very excited about the prospects of GFG, which has successfully built out leading market positions in key emerging markets. We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders to support GFG," Rocket Internet CEO Oliver Samwer said. 
 <keyword id="209933" type="PERSON" weightage="100" keywordseo="Sanjeev-Mohanty">Sanjeev Mohanty</keyword>, MD and CEO of Jabong, said that the funding will help the firm enhance its business operations. 
 
"We have had success over the <a href="http://www.businessinsider.in/Jabong-gets-20-million-in-fresh-funding-round/articleshow/51223168.cms">past few months</a>, with Jabong recently recording its best month in terms of <a href="http://www.businessinsider.in/Say-goodbye-to-huge-discounts-as-Myntra-Jabong-wants-to-make-profits-now/articleshow/50768977.cms">revenue</a>... GFG sees good progress with Jabong in India and this trust will help us strengthen our operations in the country," he added. 
 
<a href="http://coefficiency.com.au/wp-content/uploads/2014/09/shutterstock_98277620.jpg">Image source</a>

Rocket Internet invests 300 million Euros in Jabong’s parent company GFG

New Delhi, Feb 18 () Billionaire Sanjeev Gupta-led GFG Alliance on Tuesday announced the acquisition of Adhunik Metaliks and its arm Zion Steel for about Rs 425 crore, marking its entry into the Indian steel market. London-based GFG Alliance is a global group of energy, mining, metals, engineering and financial services businesses, which was eyeing Indian market for long and has become the second global company to enter the local steel market in past two months. In December 2019, L N Mittal's ArcelorMittal completed the acquisition of Essar Steel to enter the Indian market. GFG Alliance on Tuesday completed the strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion) in a Rs 4.25 billion or USD 60 million cash deal. The transaction marks the Alliance's entry into India, one of the world's fastest growing steel markets, the London-based group said in a statement.The immediate focus, it said, will be on reviving and restoring the facilities and operations of the two companies, and once stabilised the business will begin its integration into the Liberty Steel Group, a part of GFG Alliance.Commenting on the acquisition, India-born British businessman and Executive Chairman of GFG Alliance Sanjeev Gupta said: "Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India. India is one of the fastest growing and most vibrant steel markets in the world." Adhunik has an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant has both blast furnace and Electric Arc Furnace steel making capability with 0.5 million tonne per annum (MTPA) capacity, and a 34 MW captive power plant.Adhunik along with Zion Steel's steel rolling facility has a combined capacity of 400,000 tonnes per annum. The sites produce products for automotive, energy, engineering and oil and gas sectors. ABI MRMR

London-based GFG Alliance acquires Adhunik Metaliks, its arm to mark India entry

Fashion ecommerce company <keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>, which is running in losses, has been given additional funds by <keyword id="2504271" type="UNKNOWN" weightage="100" keywordseo="Global-Fashion-Group">Global Fashion Group</keyword> (<keyword id="47053" type="UNKNOWN" weightage="100" keywordseo="gfg">GFG</keyword>), so that it can stay afloat for one more year. 
 
"The board has agreed to put more than $20 million in Jabong," a person who participated in the meeting held in Luxembourg told ET. GFG was founded in 2011 by Swedish Investment <keyword id="3106793" type="UNKNOWN" weightage="100" keywordseo="AB-Kinnevik">AB Kinnevik</keyword> and German <keyword id="834871" type="UNKNOWN" weightage="100" keywordseo="Rocket-Internet">Rocket Internet</keyword> SE, and operates ecommerce ventures Dafiti in Latin America, Lamoda in Russia and the CIS, Namshi in the Middle East, Zalora in Southeast Asia and Australia while operating Jabong in India. 
 
It is reported that Oliver Samwer, CEO of Rocket Internet and deputy chairman at GFG, was not in favour of continuing the India venture, it was Kinnevik that insisted on staying put, leading to which the board eventually agreed to back Jabong. 
 
Jabong receives funds on a regular basis, similar to the financing structure of other multinational corporations, the company said in an email, adding that there are no pre-agreed funding commitments. 
 
"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 our current investment rate, are clearly evident of GFG's commitment to growing Jabong," GFG said in an email. 
 
Jabong further added that it denies "any other rumours or speculations that are to the contrary." 
 
<a href="http://economictimes.indiatimes.com/thumb/msid-51218105,width-310,resizemode-4/jabong-gets-20-million-to-stay-afloat-for-one-more-year.jpg">Image source</a>

Jabong gets $20 million in fresh funding round

While other e-tailers are doing well and making most of the festive period, <keyword id="6388367" type="COMPANY" weightage="80" keywordseo="Jabong">Jabong</keyword>'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. 
 <keyword id="6357120" type="UNKNOWN" weightage="60" keywordseo="PayTM">Paytm</keyword> and <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> 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 <keyword id="319719" type="COMPANY" weightage="80" keywordseo="Myntra">Myntra</keyword>, acquired by <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>. 
	 
	(Image: Indiatimes)

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

Chhath Puja 2024 Wishes

Bank holidays in India

ChatGPT will let you create images for free

Should the government give freebies to the poor?

World’s most powerful passports

Jio vs Airtel vs Vi Prepaid Plans

You Searched For "GFG group" and got 4 results

Rocket Internet invests 300 million Euros in Jabong’s parent company GFG

BI India Bureau

London-based GFG Alliance acquires Adhunik Metaliks, its arm to mark India entry

PTI

Jabong gets $20 million in fresh funding round

BI India Bureau

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

BI India Bureau

Popular Keywords

Buying Guides