Rocket Internet-backed online fashion store Jabong has reported net revenues of Rs 324.7 crore for the six month ended June 30, 2014 (H1 2014), registering an almost three-fold increase from Rs 113.3 crore revenues in the corresponding period last year.
The operational loss also increased to Rs 163 crore for H1 2014, up 22.2% from Rs 133.4 crore in H1 2013 while the gross loss (net revenues minus sales cost) shot up to Rs 56.8 crore for H1 2014 from Rs 15.6 crore in H1 2013.
The gross margin dipped to negative 17.5% for H1 2014 from negative 13.7% in H1 2013. Jabong mentions that this is due to the company’s continued investment in its topline growth “following market pressure of higher discounts.”
Total orders: Jabong shipped 3.2 million orders during H1 2014, more than doubling from 1.18 million orders shipped during H1 2013. Note that this includes rejected & returned orders but doesn’t include cancelled orders. Last month, Jabong had mentioned that its private labels (Lara Karen & Sangria) currently account for 20% of its shipments.
New UK & Spain offices: Jabong mentions that it has opened new offices in the United Kingdom and Spain that is primarily focused on the design of its private labels. Last month, Jabong’s competitor Myntra had also opened an office in London that was expected to focus on the company’s partnerships with brands in the United Kingdom & Europe, liaison with European design studios and also generate fashion content.
Next door service: Jabong has also started a next door service in August this year, wherein consumers could pick up their order from the nearest coffee shop, petrol station or tour operator and also get cash refunds from the partner. An ET report from August this year suggests that the company was piloting this service in 39 towns, including Murshidabad (West Bengal), Chandausi (Uttar Pradesh), Dahod (Gujarat) and Udhampur (Jammu & Kashmir).
In April this year, Amazon India had also started working with kirana stores in Bangalore for in-store pick up for its products. This was after a pilot program with BPCL at Mumbai and Delhi in March this year.
One day delivery: Last month, Jabong had also mentioned that around 70% of all orders placed in locations that offer same-day delivery are delivered within a day. It also noted that around 72% of total deliveries were made using the logistics service JaVAS which was previously owned by Jabong and was sold to Gurgaon-based QuickDel Logistics sometime last year. More on Jabong’s operational performance including mobile transactions and the contribution of Tier-2 and Tier-3 cities to the company’s revenues here.
GFG rollout: In September, Rocket Internet had 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 which GF Group that includes Rocket Internet and its investors Kinnevik, Access Industries and other shareholders will own 94.85% stake in Jabong.
– Jabong posts Rs 293.4 Cr loss in FY14; Net revenue up 3x to Rs 438.6 Cr
– 62% of Jabong’s revenues was from smaller towns in Q2-FY14
– Jabong reports 1.95M orders, 0.79M transacting customers for Q1 2014; Charts