Update: In an emailed response to Medianama, Jabong co-founder Praveen Sinha has informed that they have recently closed a ‘multi-hundred million dollar’ investment from a series of investors, although he didn’t disclose any information on the exact amount raised or the investors who participated in this investment round.
However, CDC group notes that this is just a part of Jabong’s larger (yet-undisclosed) funding round. The Economic Times reports that Jabong is raising $100 million in this round, although Jabong co-founder and managing director Praveen Sinha has declined to comment on this to the publication. We are currently awaiting a response from Jabong and Rocket Internet on this.
CDC says Jabong plans to use the investment raised to develop its supply chain infrastructure and technology platform.
Inspired by the Amazon’s online clothing and shoe store Zappos, Jabong was Rocket Internet’s first venture in India and started its Indian operations in January 2012. Following this, Rocket Internet rolled out a string of businesses like FoodPanda (which raised $20 million yesterday), FabFurnish (online furniture portal), OfficeYes (office products portal), Printvenue (online printing service), Cuponation (deals and coupon website) and Wimdu (apartment and holiday renting portal).
It currently offers products like footwear, men’s and women’s apparel, home & furniture, jewellery, sports and accessories from brands like Adidas, FabIndia, Fastrack, Fila, Fossil, Giordano, Nike, Puma, Wildcraft and others. CDC says Jabong provides more than 4,000 local manufacturers access to customers.
It competes with other popular e-commerce players like Flipkart, Myntra, Snapdeal and Amazon India among others. Jabong had claimed to have generated 14,000 orders on a daily basis as of September 2013, of which 60% were from small towns.
Last month, fashion e-commerce venture Stylista.com* had signed an exclusive deal with Jabong to sell their designer wears for four months, following which it was planning on offering their products on Myntra and Flipkart.
Logistic Service JaVAS Sold To QuickDel Logistics
Jabong also seems to have sold its third-party logistics service JaVAS (Jabong Value Added Services) to Gurgaon-based QuickDel Logistics, as pointed out by a NextBigWhat report. Sinha declined to comment on this to the publication, although he said this happened in 2013. He also noted that JaVAS was always slightly separate from Jabong and is now an independent entity.
As per JaVAS website, Jabong is a currently a client of JaVAS. Other clients include Yepme, Happily Unmarried, IndiaToday.in, Youshine, Orosilber and Teesort etc.
Co-Founders Mukul Bafana & Manu Jain Quit
Sinha told the publication that co-founder & managing director Mukul Bafana has also quit Jabong to join his family business. Last month, another co-founder & managing director Manu Kumar Jain had quit the company to start his own venture Gynjer which will design, develop and sell wearable smart devices like smartwatches and smart glasses, as indicated by a The Hindu Business Line report.
Gynjer will also sell self-branded electronic goods like smartphones & phablets made by third-party manufacturers in China and Taiwan and is expected to officially launch by June 2014. Jain had also told the publication that they are in talks with four venture capital funds to raise investment and expect to close a million dollar investment by the next week. It will be interesting to see how the company differentiates itself from a plethora of low cost smartphone and phablets makers in India.
*Disclosure: Rishi Khiani’s AntFarm, which has launched Stylista, is an advertiser with MediaNama