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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

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

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

<ul class="summary-list"><li><keyword id="48085" type="CITY" weightage="60" keywordseo="Credit-Suisse">Credit Suisse</keyword> investors exposed to the collapsed <keyword id="10863254" type="UNKNOWN" weightage="60" keywordseo="greensill-capital">Greensill Capital</keyword> fund may face an additional $190 million loss on their holdings.</li><li>Greensill filed for insolvency in March when it couldn't roll over insurance coverage for products in sourced and packaged.</li></ul>Credit Suisse investors who were exposed to funds invested in assets sourced by collapsed financial firm Greensill Capital may face an additional $190 million loss on their holdings, according to <a href="https://www.bloomberg.com/news/articles/2021-04-26/credit-suisse-fund-investors-face-more-losses-on-greensill-loans">Bloomberg</a>. A discount of roughly 7% will be applied to notes on a book of around $2.8 billion loans held in the funds, which will add to losses stemming from troubled borrowers including Katerra, BlueStone Resources, and GFG Alliance, reported Bloomberg, citing a Credit Suisse statement.Greensill Capital filed for insolvency on March 8 as it couldn't roll over insurance coverage for some of the products it sourced and packaged and couldn't repay a $140 million loan to Credit Suisse. The firm specialized in supply-chain finance, a type of short-term cash advance to companies to stretch out the time they have to pay their bills.Credit Suisse added that the valuation on the $2.3 billion notes linked to Katerra, Bluestone and GFG remain uncertain. Credit Suisse did not identify creditors that may not fully repay the loans.

Credit Suisse investors exposed to collapsed Greensill Capital fund are facing another $190 million of losses

<ul class="summary-list"><li><keyword id="149379" type="PERSON" weightage="60" keywordseo="West-Virginia">West Virginia</keyword> Gov. <keyword id="1909191" type="PERSON" weightage="60" keywordseo="Jim-Justice">Jim Justice</keyword> is reportedly on the hook for $700 million in loans from <keyword id="11028705" type="PERSON" weightage="60" keywordseo="greensill">Greensill</keyword>, the collapsed financial firm.</li><li>Justice personally guaranteed loans Greensill made to his coal companies, The Wall Street Journal reported.</li><li><keyword id="48085" type="CITY" weightage="60" keywordseo="Credit-Suisse">Credit Suisse</keyword> is trying to claw back cash for people who invested in its Greensill-linked funds.</li></ul>West Virginia Gov. Jim Justice is personally liable for around $700 million in loans that the collapsed financial firm <keyword id="10863254" type="UNKNOWN" weightage="60" keywordseo="greensill-capital">Greensill Capital</keyword> made to his coal companies, according to a report.Justice and his wife guaranteed the loans from Greensill to his coal businesses, the <a href="https://www.wsj.com/articles/west-virginia-gov-jim-justice-is-personally-liable-for-700-million-in-greensill-loans-11622462401?mod=hp_lead_pos2">Wall Street Journal reported</a>, citing people familiar with the issue and documents.Greensill, which collapsed into bankruptcy <a href="https://markets.businessinsider.com/news/stocks/softbank-backed-greensill-capital-preparing-to-file-for-insolvency-2021-3-1030144913">in March</a>, had packaged the loans and sold them to Credit Suisse, The Journal reported. Now, Credit Suisse is in talks with Justice's <keyword id="4820203" type="PERSON" weightage="60" keywordseo="bluestone-resources">Bluestone Resources</keyword> and other major borrowers from Greensill to recoup the money and repay investors, per The Journal.The Swiss bank told investors in a recent notice that Bluestone owes nearly $700 million, the WSJ reported.Bluestone said in a lawsuit brought in March that it had not expected to start repaying the loans until at least 2023.The personal liability of Justice, who has been governor of West Virginia since 2017 and is a Republican, adds to his financial pressures. <a href="https://www.forbes.com/sites/christopherhelman/2021/03/30/gov-jim-justice-no-longer-a-billionaire-after-850-million-debt-to-insolvent-greensill-capital-revealed/">Forbes knocked</a> the politician and businessman off its billionaires list earlier this year, due in large part to Greensill's collapse.Justice's companies are also in legal disputes with other companies over payment contracts and coal deliveries, The Journal reported said. They have settled a number of disputes in recent years over alleged non-payment of bills, according to <keyword id="6355005" type="UNKNOWN" weightage="60" keywordseo="news">news</keyword> outlet <a href="https://www.propublica.org/article/the-billionaire-governor-whos-been-sued-dozens-of-times-for-millions-in-unpaid-bills">ProPublica</a>.A representative for Justice did not immediately respond to requests for comment. Credit Suisse declined to comment. Insider could not reach Bluestone's representatives, although they declined to comment to The Journal.As well as the guarantees from the governor and his wife, Justice's son James C. Justice III guaranteed loans up to a certain limit, The Journal reported. The collapse of Greensill has heaped pressure on Credit Suisse, which is frantically trying to recoup its losses. It said in April that it was focused on three main borrowers: Bluestone, British-Indian steel magnate Sanjeev Gupta's GFG Alliance, and SoftBank-backed construction company Katerra.

West Virginia Gov. Jim Justice is reportedly on the hook for $700 million in loans from collapsed lender Greensill

In a bid to seal its position as market leader, <a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate">Flipkart </a>has acquired online fashion portal<a href="http://www.businessinsider.in/searchresult.cms?query=jabong&amp;sortorder=effectivedate"> Jabong</a> through its unit <keyword id="319719" type="COMPANY" weightage="100" keywordseo="Myntra">Myntra</keyword>. The e-commerce player has pipped rival <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=aditya+birla+group&amp;sortorder=effectivedate">Aditya Birla Group</a> to seal the deal at an estimated $70 million.
 <keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword>, which was at par with <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>'s <a href="http://www.businessinsider.in/searchresult.cms?query=myntra&amp;sortorder=effectivedate">Myntra</a> in sales until early 2014, has seen a steep decline in market share since then. This is mainly because of the crores Myntra’s parent Flipkart, Snapdeal and Amazon have been spending on advertisements and discounts.

	By the end of May, Jabong was down. While it reported a 14% hike, it's loss only narrowed from €11.9 million from €16.3 million in the same quarter a year earlier.

	Not to mention, the company has seen an exit of senior management, slowdown in funding and overbearing competition from Amazon India.

	Earlier this month, Jabong fastened up its exit process as the firm’s owners, AB Kinnevik and Rocket Internet didn't want to pump more money into a losing race horse.

	The valuation of GFG (owner of Jabong) slid almost a third to $1.13 billion in a mere 10 months. In May, the company last raised $339 million from Kinnevik and Rocket Internet, but that was a much lower valuation.

	The current deal is estimated to be around $50-75 million, allowing existing investors Rocket Internet and Kinnevik AB to quit.

	Jabong’s investors have managed to find a buyer for their struggling business, but does this mean any good for Flipkart? We'll have to wait and watch. 
	 
	<a href="http://ateen.in/wp-content/uploads/2014/09/jabong-21.jpg">Image Source</a>

The Story of Jabong's exit: From $500Mn to $70Mn

<keyword id="6388367" type="COMPANY" weightage="100" keywordseo="Jabong">Jabong</keyword> is on a top-level hiring spree and today it announced its fourth hiring in three months. It appointed <keyword id="2941152" type="PERSON" weightage="100" keywordseo="Muralikrishnan-B">Muralikrishnan B</keyword>, former <keyword id="6357395" type="CITY" weightage="100" keywordseo="eBay">eBay</keyword> India country manager, and senior e-commerce and consumer internet executive, as the company's chief operating officer. 
 
"We are at an exciting phase of evolution at Jabong, as we transform into a professionally managed company. I am sure that his (Muralikrishnan) contributions will help Jabong achieve profitable growth by focusing on product innovation while serving consumers with superior mobile and digital shopping experience," Jabong CEO and Managing Director Sanjeev Mohanty said in a statement. 
 
Muralikrishnan will directly report to Mohanty and will be responsible for overseeing the technology, product and digital marketing functions, the statement said. 
 Prior to joining Jabong, he was Chief Operating Officer of online <keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate">real estate</keyword> portal IndiaProperty, before which he co-founded a start-up in the digital health space. 
 
He will further have the responsibility to guide and assist in product management at other Global Fashion Group companies, the company statement said. 
Jabong is one of the six fashion e-commerce brands within Global Fashion Group (GFG) that operates across 28 countries. 
 
The company, founded in 2011, is headquartered in Gurgaon and has around 800 employees. 
 
(Image credits: Indiatimes)

Jabong appoints former eBay country manager Muralikrishnan
B as its COO

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!

If you’re a fan of buying fashion stuff online, here’s something of your interest. We hope you have upgraded to a smartphone by now. Because fashion ecommerce company <keyword id="319719" type="COMPANY" weightage="20" keywordseo="Myntra">Myntra</keyword> will be shutting down its website from 15th of this month and become an “app only” platform. With mobile-based commerce emerging as the next biggest opportunity, Myntra is taking the lead in marking the end of desktop and browser based shopping. 
 
The rapid expansion of smartphones from 120-140 million in 2014 to 600-700 million in 2020 will provide the base for creation of an inclusive market unprecedented in the history of fashion shopping. Mobile apps are taking utilitarian role in users’ life by being the default mode of accessing and consuming internet services. According to a recent study, 90% of smartphone users in India use apps, which is close to 158 million as of today. The country ranks second only to the US in the usage of shopping apps. 
 However, if you dislike shopping from mobile, blaming it to the smaller screen size, know here, <keyword id="6388367" type="COMPANY" weightage="20" keywordseo="Jabong">Jabong</keyword> will keep websites open for apparel shopping. 
 “We strongly believe customers should have <keyword id="819468" type="UNKNOWN" weightage="20" keywordseo="the-choice">the choice</keyword> to buy either on his smartphone or on the computer," Jabong <keyword id="217739" type="POSITION" weightage="20" keywordseo="cofounder">Cofounder</keyword> <keyword id="536011" type="PERSON" weightage="20" keywordseo="Praveen-Sinha">Praveen Sinha</keyword> told The Economic Times, adding that the <keyword id="174155" type="CITY" weightage="20" keywordseo="Gurgaon-based">Gurgaon-based</keyword> company generates half its sales from mobile devices and will continue to host its website. "It's still 50-50 for us." 
 
Sinha said an app-only operation may limit price comparison and product visibility for consumers, who could find it easier to quickly open other sites on a laptop or desktop. "Getting a price discovery from an app will be very difficult.” 
 
Jabong won’t raise funds independently: In an interview with The Economic Times, Jabong Cofounder Praveen Sinha has said, “Funds will be raised at a global level and allocated to the various country-specific businesses as the need arises. Jabong is now part of the <keyword id="2504271" type="UNKNOWN" weightage="20" keywordseo="Global-Fashion-Group">Global Fashion Group</keyword> (GFG). 
 Sinha said Jabong will no longer raise funds independently. It received $100 million from British development finance institution CDC and other investors last year. Jabong is now part of the Global Fashion Group, which will provide the finances. GFG will now become the central group where, if required, further <keyword id="6357455" type="EVENT" weightage="20" keywordseo="Funding">funding</keyword> will be raised." 
 As per the financial daily, last year, Rocket Internet and AB Kinnevik created a global alliance of five large ecommerce companies in which both have sizeable investment -- Jabong, Dafiti in <keyword id="48890" type="COUNTRY" weightage="20" keywordseo="Latin-America">Latin America</keyword>, Lamoda in <keyword id="6358826" type="COUNTRY" weightage="20" keywordseo="Russia">Russia</keyword> &amp; CIS, Namshi in <keyword id="1009187" type="UNKNOWN" weightage="20" keywordseo="the-middle">the Middle</keyword> East and Zalora in <keyword id="53564" type="UNKNOWN" weightage="20" keywordseo="Southeast-Asia">Southeast Asia</keyword> and <keyword id="6355478" type="COUNTRY" weightage="20" keywordseo="Australia">Australia</keyword>. Sinha told the ET that, as part of the global alliance, Jabong will be able to secure exclusive rights to sell foreign brands in India, to list brands in other countries and meet its technological requirements. 
 Sinha was dismissive of the buzz that US-based <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>.com was in talks to acquire Jabong in a bid to gain a strong foothold in fashion, one of the fastest-growing segments of online retailing. 
 
“Talks with Amazon were never serious," he said. Germanybased Rocket Internet's ambition is to become the largest online platform outside China and the US and Jabong is an important cog in its global scheme of things.

You Searched For "gfg" and got 9 results

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

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

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Jabong gets $20 million in fresh funding round

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Credit Suisse investors exposed to collapsed Greensill Capital fund are facing another $190 million of losses

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West Virginia Gov. Jim Justice is reportedly on the hook for $700 million in loans from collapsed lender Greensill

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The Story of Jabong's exit: From $500Mn to $70Mn

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Jabong appoints former eBay country manager Muralikrishnan B as its COO

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

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Myntra now an App-only brand, Jabong not keen on shutting down website for app-only approach

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