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Jabong posts Rs 293.4 Cr loss in FY14; Net revenue up 3x to Rs 438.6 Cr

Rocket Internet-backed online fashion store Jabong posted a net loss of Rs 293.4 crore for the financial year ended March 31, 2014 (FY14), a modest improvement from Rs 318.7 crore loss in the previous year. The gross loss i.e. the net revenue minus sales cost declined to Rs 44.7 crore for the fiscal from Rs 37.8 crore loss in the previous fiscal. However, in terms of percentage of net revenues, it improved from negative 26% to negative 10%. Jabong attributed this to an increase in the share of its private label sales, along with an increase in scale and more efficient pricing by partners. Net revenues: The net revenues for the company saw a three-fold increase to Rs 438.6 crore for FY14, up from Rs 143.3 crore revenues in FY13. Jabong attributed this growth to an increase in its product portfolio, exclusive tie-ups, launch of International brands and brand building activities. Rocket Internet also notes that based on the preliminary management information data, Jabong's net revenues increased in the six months ended June 30, 2014 as compared to the six months ended June 30, 2013, although the growth was slightly lesser than the corresponding increase in gross merchandise volume. Jabong's EBITDA loss also increased for this period due to an expansion of business while the EBITDA margin improved significantly. The company however didn’t disclose any specific information on its revenues or EBITDA loss for this period. Expenditure: Jabong’s capital expenditure increased in absolute terms to Rs 26.63 crore for FY14 from Rs 20.81 crore in…

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