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Global Fashion Group secures €300M from Rocket Internet

Global Fashion Group has raised €300 million (~$345.57M) from Rocket Internet. Rocket Internet will underwrite €100 million, it will invest €85 million while converting the existing investment at the terms of financing. Jabong’s MD and CEO Sanjeev Mohanty said in a statement that the funding will help Jabong to enhance its business operations in India. According to Mohanty, the past few months were its best in terms of revenue. In July last year, Global Fashion Group raised euro 150 million (~$166 million) in a round of funding from existing investors Rocket Internet and AB Kinnevik. With this investment, Kinnevik would own at least 25.0% and Rocket at least 21.9% of GFG.The fashion platform would use the funds for logistics, marketing and product development. It also acquired two Brazilian online fashion businesses, Tricae and Kanui, is a share for share transaction. The Global Fashion Group operates in 28 countries under different businesses and employs 9,500 people. In September 2014, Rocket Internet had merged Jabong with four other online fashion retailers in Latin America, Russia, Middle East, South-East Asia and Australia to create Global Fashion Group. Financials: Last month, Jabong reported revenues of Rs 218.53 crore in the fourth quarter of 2015. This represented a decline of 19.3% from Rs 270.75 crore in the same quarter last year. The company also reported a gross merchandise value of Rs 377.73 crore, a decline of 19% y-o-y from Rs 465.61 crore. Net loss for the company in Q4 2015, however, decreased to Rs 1.98…

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