wordpress blog stats
Connect with us

Hi, what are you looking for?

AB Kinnevik and Rocket Internet looking to sell Jabong to Paytm: report

jabong-cmn

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

Advertisement. Scroll to continue reading.

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.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

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

News

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

News

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

News

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

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

You May Also Like

News

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...

Advert

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...

News

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...

News

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
Name:*
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