India: Fashion ecommerce company Jabong, which is running in losses, has been given additional funds by Global Fashion Group (GFG), so that it can stay afloat for one more year.
“The board has agreed to put more than $20 million in Jabong,” a person who participated in the meeting held in Luxembourg told ET.
GFG was founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE, and operates ecommerce ventures Dafiti in Latin America, Lamoda in Russia and the CIS, Namshi in the Middle East, Zalora in Southeast Asia and Australia while operating Jabong in India.
It is reported that Oliver Samwer, CEO of Rocket Internet and deputy chairman at GFG, was not in favour of continuing the India venture, it was Kinnevik that insisted on staying put, leading to which the board eventually agreed to back Jabong.
Jabong receives funds on a regular basis, similar to the financing structure of other multinational corporations, the company said in an email, adding that there are no pre-agreed funding commitments.
“GFG has raised over $1.5 billion in capital in its history and its Board remains unanimously committed to all regions it operates in, including India. Jabong has made a number of recent senior management hires and has also recently witnessed record operating performance. These facts, which are supported by public filings on our current investment rate, are clearly evident of GFG’s commitment to growing Jabong,” GFG said in an email.
Jabong further added that it denies “any other rumours or speculations that are to the contrary.”
Jabong gets $20 million in fresh funding round