Jabong

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 FY13, however in terms of percentage of net revenues, it declined to 6% in FY14 from 15% in FY13.

Rocket Internet Investment: Rocket Internet has invested €4.3 million (around $5.5 million in current exchange rates) in Jabong until now and currently owns 21.4% stake in the company.

Overall, Jabong has raised €189 million (around $240.7 million) until now and the company was valued at €388 million at the last financing round. Remember that Jabong had closed a ‘multi-hundred million dollar’ investment from a series of investors including a $27 million investment from UK’s development finance institution CDC Group plc earlier this year.

Cash & Cash Equivalents: The cash & cash equivalents for Jabong increased to Rs 777.5 crore as of March 31, 2014 from Rs 43.2 crore in March 31, 2013. The net working capital also increased to Rs 50.48 crore for the fiscal, from a negative Rs 3.3 crore in FY13, due to an increase in scale and orders.

Rocket Internet Shareholding & GFG Group roll-up

As of now, Rocket Internet indirectly owns Jabong via an Intermediate holding company called BigFoot I. Rocket Internet owns 29.23% stake in BigFoot I which in turn owns 73.2% stake in Jabong.  BigFoot I also owns 87.66% stake in the online furniture portal FabFurnish.

BigFoot Jabong shareholding

Last month, Rocket Internet however stated plans of merging Jabong into a roll-up of emerging markets focused fashion e-commerce brands called Global Fashion Group (GFG). Other companies being merged into this entity include Dafiti (Latin America), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia).

This transaction is expected to close in December 2014. Following this, GF Group that includes Rocket Internet and its investors Kinnevik, Access Industries and other shareholders will own 94.85% stake in Jabong.

GFG Shareholding

Also readJabong reports 1.95M orders, 0.79M transacting customers for Q1 2014; Charts