wordpress blog stats
Connect with us

Hi, what are you looking for?

Jabong to be merged into Rocket Internet and Kinnevik’s fashion e-commerce roll-up Global Fashion Group

Indian e-commerce company Jabong is being merged into a roll-up of emerging markets focused fashion e-commerce brands called Global Fashion Group (GFG) by Rocket Internet and its investor Kinnevik. Other companies being merged into this entity include Dafiti (Latin America), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia), and along with Jabong, will cover 23 countries. (hat tip: @vijayshekhar)

According to the statement, as of 30 June 2014, GFG had 4.6m active customers and over 7,000 employees. For the first six months of 2014, GFG websites had 353m unique visitors, received 8.4m orders and generated EUR 436m of Gross Merchandise Volume, according to the investors. In 2013, GFG’s IFRS revenues amounted to EUR 406m.

Funding and Shareholding

The companies have approximately EUR 350m of cash as of 30 Jun 2014. Since launch in 2011 and 2012, the five e-commerce companies have attracted funding in excess of EUR 1 bn from Kinnevik, Access Industries, Summit Partners, Verlinvest, Ontario Teachers’ Pension Plan, Tengelmann and a number of other investors. The five companies have a combined valuation of EUR 2.7bn, as per their last funding round.

All shareholders will contribute their shares into the Luxembourg-based GFG. The three largest shareholders in GFG will be Kinnevik, Rocket Internet and Access Industries, with 25.1%, 23.5% and 7.4% ownership interests, respectively. The transaction is subject to regulatory approvals, including antitrust approval, and is expected to close late in 2014.

Advertisement. Scroll to continue reading.

Kinnevik is also buying additional shares from Phenomen Ventures in Bigfoot, in exchange for, partly Kinnevik’s shares in HelloFresh, and partly in cash through a payment of EUR 18m. The transaction will increase Kinnevik’s ownership in GFG by 1.0% to 26.1%.

Operational Structure Changes

The GFG companies will continue to be led by their respective founders and management teams with a few select additions to the leadership team, intended to foster group synergies and the pursuit of global initiatives. The Board of Directors of GFG will include Lorenzo Grabau, CEO of Kinnevik as Chairman, Oliver Samwer, CEO of Rocket Internet as Deputy Chairman and representatives of the other largest shareholders.

How it will work

“GFG will market a wide assortment of leading international apparel and accessories brands, a tailored selection of highly engaging internally developed brands and local assortments developed for specific ethnic markets notably in India, Indonesia and the Middle East. Mobile commerce will remain a core focus for GFG through the continued development of mobile applications aimed at the growing smartphone user base in its territories,” Kinnevik and Rocket Internet said in a statement.

According to the companies, the GFG roll-up will give it greater leverage in terms of economies of scale while sourcing from International brands and marketing with global media channels. In addition, they will be able to leverage competencies across companies to strengthen private label efforts (“Lara Karen” and “Sangria” by Jabong in India and “ZALORA” and “Ezra” by Zalora), share knowledge of building infrastructure for last mile delivery networks (e.g. LaModa Express in Russia, Jabong in India), and deliver a mobile application experience.

Advertisement. Scroll to continue reading.

Jabong in India

jabong-customers-vs-gross-orders

jabong-total-customers-vs-new-customers

jabong-news-customers-vs-orders-placed

jabong-orders-per-customer

 

More charts here.

Kinnevik and Rocket Internet in India

Kinnevik, a Swedish investment firm, had also invested $90 million in Quikr earlier this year. It also invested $20 million in FoodPanda, which also raised money from Phenom Ventures and Rocket Internet. Rocket Internet and Kinnevik have also invested in PricePanda which launched in India recently.

Advertisement. Scroll to continue reading.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ