Jabong gets additional funding to stay operational for another year

India: Global Fashion Group (GFG), which is a parent company of Jabong, has decided to invest USD20 million in Jabong. Global Fashion Group was founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE. It operates various e-commerce ventures like Dafiti in Latin America, Namshi in the Middle East, Zalora in South East Asia, Lamoda in Russia and Jabong in India. There were no per-agreed funding agreements but Jabong receives funds on regular basis. With disagreement of Rocket Internet SE for additional funding to Jabong, Kinnevik insisted on staying on the decision.

Jabong is putting in efforts by hiring number of senior management personnel and had witnessed high operating performance. In India, Jabong competes with Flipkart, Myntra, Snapdeal and Amazon in online fashion retail space.

According to a recent report published by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country.