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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!

<keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>, which used to lead India’s online fashion portal, has been on the block for over a year, trying hard find a buyer even as its investors have drastically dropped the asking price. 
 
The firm, which was backed by Rocket Internet, saw a major drop in sales and cut losses in 2015. The investors have now settled for an estimated price of $100 million, which is unbelievably low from around $1 billion, the amount that it had sought during talks with Amazon India in 2014, a deal that didn’t see the light of the day. 
 
Even though Jabong was founded under Rocket Internet in 2012, it’s the Swedish investor Kinnevik that is asking for a sale. Kinnevik owns a big stake in Jabong's parent company Global Fashion Group. 
 
"They (Rocket Internet and Kinnevik) just want to park the company somewhere, find a home for it," said one person aware of the matter. "But there are no buyers yet." 
 It was earlier this month that Rocket Internet sold another of its India portfolio companies, the furniture portal Fabfurnish, to <keyword id="44950" type="PERSON" weightage="100" keywordseo="Kishore-Biyani">Kishore Biyani</keyword>'s Future Retail for around Rs 11 crore. 
 
Jabong was not only in with Amazon India for a possible buyout, but also with several other Indian online marketplaces. In fact, in 2015, an offer to buy Jabong at around $200 million in 2015 was rejected, a source told ET. 
 
 
<a href="http://www.suitsbysuits.com/assets/htmlimages/iStock_No_Hand_Shake_000020725761Small.jpg">Image source</a>

Jabong has no buyers, not even at the unbelievably low price of Rs 663 crore

<keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> is dishing out employee stock options (ESOPs) to top-level staff of <keyword id="6388367" type="COMPANY" weightage="20" keywordseo="Jabong">Jabong</keyword>. At least two dozen employees of Jabong have been offered this option. Jabong’s employees will get the options based on an April valuation which was at $10.2 billion for Flipkart. If Flipkart raises capital in the next funding round and is valued at $11.6 billion, the valuations are expected to be revised. "They have given the stock with Flipkart option to 25-30 people at Jabong and as the next round of funding happens, the valuations will be revisited. Right now, they have given at $10 billion valuation," a person familiar with the development told ET. "Employees have been the strongest pillars of support over the past decade for the entire Flipkart Group, and we believe in rewarding them in the truest possible sense," a Flipkart spokesperson told ET in an emailed response. Through the ESOPs, companies give employees the right to purchase the company stock at a specified price, generally lower than the price offered to investors, for a limited time period.

Flipkart is rolling out stock options for senior employees of Jabong

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

Soon you will not have to download Paytm, Hotstar and Jabong as mobile applications of these companies will come pre-embedded in smartphones. 
 In a bid to tap larger customer base of handset makers, Paytm, Jabong and Hotstar have inked deals with handset manufacturers like <keyword id="71696" type="COMPANY" weightage="80" keywordseo="Micromax">Micromax</keyword>, Intex, Spice, Microsoft and Karbonn and will come embedded in these. 
 
"Up to 75-80% of our sales come through either our smartphone apps or mobile phones. So, mobile strategy is a vital element of marketing for us, especially android platform," Shankar Nath, Senior Vice-President of Paytm told Economic Times. 
 Paytm has a partnership with <keyword id="10591" type="CITY" weightage="80" keywordseo="Samsung">Samsung</keyword>, Microsoft, Micromax, Lava and Spice for pre-embedding its app on the highest selling models of these handset manufacturers. 
 
The financial daily reported that Paytm app had seen close to 29 million downloads. 
 
Likewise, Jabong has inked deal with Microsoft to pre-bundle its app in some models of the Lumia series. The partnership will help the e-Commerce company reach out to Lumia loyals. 
 
"When an app is already installed on a smartphone, the probability of the consumer using it increases and hence, such tie-ups make sense for us," Praveen Sinha, co-founder of Jabong, told ET. 
 
As per a study by Zinnov, Jabong's transactions through smartphones have increased to up to 50% from 5% about two years ago. As smartphone sales grow about 51% every three months, the mobile commerce market is likely to grow 55% to $19 billion by 2019, from $2 billion now. 
 
"Media consumption pattern of consumers have changed completely. It will continue to change rapidly in the coming future. We are moving towards the era of wireless communications. So this is the new way towards which marketing and advertising is moving," Sandeep Goyal, chairman of Mogae Media, told ET. 
 
Goyal said that the brands were looking towards digital marketing strategies more seriously. 
 
Even Hotstar, the mobile-based application of Star network, has a tie-up with Micromax, Panasonic, Karbonn, Lava and Spice to pre-embed its app on some of their leading models. 
 
The mobile app offers over 35,000 hours of content in seven languages, ranging from movies and television shows to live sports.

You Searched For "Jabong" and got 6 results

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

Jabong has no buyers, not even at the unbelievably low price of Rs 663 crore

BI India Bureau

Flipkart is rolling out stock options for senior employees of Jabong

BI India Bureau

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

BI India Bureau

Now Paytm, Jabong to come embedded in popular smartphones

BI India Bureau

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