Jabong gets new lease of existence through GFG
Global Fashion Group (GFG) has decided to bring in supplementary funds into its lossmaking fashion e-commerce company Jabong to keep it afloat for one more year as per a report.
“The board has agreed to put more than $20 million in Jabong,” said a person who participated in the meeting. GFG, founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE, operates e-commerce ventures Dafiti in Latin America, Lamoda in Russia and the CIS, Namshi in the Middle East, Zalora in Southeast Asia and Australia and Jabong in India.
While it’s been heard that Oliver Samwer, CEO of Rocket Internet and deputy chairman at GFG, was said to be not in favour of continuing the India venture, Kinnevik insisted on staying put and 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.
However, company in a mail said “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,”
Jabong said it denies “any other rumours or speculations that are to the contrary.” An email sent to Kinnevik remained unanswered and a Rocket spokesperson declined to comment. GFG appointed Sanjeev Mohanty as CEO and managing director of Jabong.