wordpress blog stats
Connect with us

Hi, what are you looking for?

Jabong reports Rs 345.8 crore GMV for July-September 2014


Rocket Internet-backed online fashion store Jabong has reported net revenues of Rs 216 crore for the three month period ended September 31st 2014, up almost two and a half times (146%) from the Rs 87.8 crore reported for the same period in 2013. This was helped by a 177% increase in Gross Merchandise Value (GMV) increase for the company, up to Rs 345.8 crore, up from 124.8 crore for Q3-2013.

To give you some context, Jabong had reported net revenues of Rs 438.57 crore for the full year ended 31st March 2014, averaging around Rs 109 crore a quarter, and a GMV of Rs 511.37 crore, averaging around Rs 128 crore per quarter.

Loss for the company for Q3-2014 increased substantially to Rs 56.9 crore for the quarter, from a loss of Rs 4 crore in Q3-2013. The company reported an operational (EBITDA) loss of Rs 155 crore for Q3-2014, up from a Rs 48.2 crore loss reported in Q3-2013.


On the positive side, the total number of orders jumped up for the company, in a period that preceded the festive season and shopping festivals like GOSF and Diwali Mela: Jabong orders increased to 2.52 million during the period, almost 3 times the 0.86 million orders shipped during Q3-2013.

According to our calculations, the order value dropped 5.4% year on year, to Rs 1372.22 for Q3-2014 from Rs 1451.2 in Q3-2013.

Advertisement. Scroll to continue reading.

The company said that it “experienced lower margins due to the overall Indian market environment.” Gross margin was down to -26% in Q3-2014, as compared to -5% in Q3-2013.

Jabong had Rs 545.4 crore cash in bank at the end of September 2014.

Operational developments

– During the period, Jabong launched new brands, including Burtons, G-Star RAW, Dorothy Perkins, River Island and Miss Selfridges. Jabong also added designer labels like RohitBal, Gaurav Gupta and Krsna Mehta. “Exclusivity was the flavor of 2014 when it came to online retail in India,”  Praveen Sinha, CEO of Jabong, told MediaNama as a part of it’s OUTLOOK15 series on e-commerce. More from that here.
– It introduced “shop the look” and enhanced mobile web and app user experience as mobile revenue share is increasing, it says, “rapidly”. Sinha had told MediaNama that “Mobile and site contributed to 33% revenues with our sale figure mounting up by 4-5 times every year.”
– Expanded its delivery offering by introducing next door delivery service enabling customers to pick up packages at nearby shops. Sinha told MediaNama that “Dynamic changes like next door delivery, open delivery and same day delivery for a whole range of products led to myriad of customer acquisition for the industry and garnered significant customer loyalty towards the brand. Due to such developments, we can now comfortably predict over 3-fold growth in the M-wallet segment in the next 5 years.” Also, in 2014, the Cash on Delivery percentage has gone down comparatively, Sinha had told MediaNama.

– Recently, the Kerala government slapped a fine on Jabong, along with other online retailers, for evasion of sales tax in 2012-13 and 2013-14. More on that here.

– During the last year, Jabong witnessed an increase in the sales from tier II and tier III cities by 50-60%. “45% of the sales of the designer collection of Jabong Online Fashion Week are coming from smaller cities apart from the usual responses that we received from the major metros,” Sinha told MediaNama.

Advertisement. Scroll to continue reading.

One interesting point from Sinha indicates the growth in ecommerce: during the festive season, Jabong “saw air cargo getting clogged which is a big challenge for e-commerce industry.”

Outlook15 for Jabong (from our Outlook15 series)

Praveen Sinha told MediaNama that:

– In terms of fashion, we are likely to see a lot of prints and patterns, military and camouflage, 70’s inspired clothing, cut-outs and stripes trending over the year. Colors which might dominate this year are marsala and indigo.

– We further foresee innovation in delivery and payment methods. Customers today expect a hassle free and fastest delivery of their products and for the same purpose every brand needs to constantly diversify their offerings.

– We strongly predict activation of people in rural areas, though we have already started receiving significant response from tier II and III cities but we also plan to create a brand name in every nook and cranny of the country. In order to embrace the rural population into the e-commerce realm, simplification of payment process will be seen in the near future.

Advertisement. Scroll to continue reading.

– Mobile to play a very important role in the buying and selling. Mobile is driving a huge portion of the revenues and it is only expected to increase.

– As a part of on-ground marketing, e-commerce players are going to reach out to the customers to show that they physically exist and companies will more robust against their return policies for the people who misuse them.

– We definitely see an increase in CSR involvement of the e-commerce players. Also, a lot of these e-commerce companies might go for public funding in the upcoming years with global players entering the Indian market giving the existent firms a stiff competition.

GFG rollout: In September last year, Rocket Internet had announced 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).

GF Group, which includes Rocket Internet and its investors Kinnevik, Access Industries and other shareholders own 94.85% stake in Jabong.

Also read:

Advertisement. Scroll to continue reading.

– 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

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.



India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.


Find out how people’s health data is understood to have value and who can benefit from that value.


The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


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

You May Also Like


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...


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...


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...


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...

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
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