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Global Fashion Group (GFG) which owns fashion etailer Jabong, which is backed by Rocket Internet and AB Kinnevik, is in talks with Paytm to sell the company, according to a report by Mint. The report added that AB Kinnevik is spearheading the sale process and is reaching out to other buyers as well. AB Kinnevik is the majority shareholder in Global Fashion Group with 25% while Germany’s Rocket Internet owns 21.9% in the company.

The report added that AB Kinnevik is also holding negotiations on behalf of Rocket Internet and that the talks are in initial stages with the company being valued at around $500 million and $800 million.

The Economic Times last week reported that  GFG’s chief financial officer Nils Chrestin is running day-to-day operations at Jabong following the exit of co-founders Arun Chandra Mohan and Praveen Sinha.

In September 2014, Rocket Internet merged Jabong with four other online fashion retailers in Latin America, Russia, Middle East, South-East Asia and Australia to create GFG. The company houses the German e-commerce company’s fashion businesses from emerging countries, including India’s fashion website Jabong, Latin America’s Dafiti, Russia’s Lamoda, Namshi of the Middle East and Zalora of South-East Asia and Australia.

Amazon’s earlier attempt to buy Jabong

In November 2014, it was reported that Amazon was in talks to buy Jabong. At the time the deal was pegged at around $1.2 billion. However, the deal did no go through in January following disagreements between the companies over valuation, according to a VCCircle report.

Financials

Jabong 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 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.