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GFG injects over 20 million dollars into Jabong

By Meenakshi Kumar

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The lossmaking fashion e-commerce portal Jabong has got a fresh lease of life after Global Fashion Group (GFG) decided to inject additional funds into the e-portal. More than 20 million dollars (Rs 13.42 crores) have been agreed to be put in the venture.

This decision came about in a meeting held in Luxembourg. While Oliver Samwer, CEO of Rocket Internet and deputy chairman at GFG was not in favour of continuing the India venture, AB Kinnevik insisted on continuing with the India operations and eventually the board had to back Jabong.

An email said that ‘GFG had raised 1.5 billion dollars (around Rs 1,007 crores) 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 was founded in 2011 by Swedish investment AB Kinnevik and German Rocket Internet SE.

Jabong has, however, denied any such report. Early December 2015, GFG had appointed Sanjeev Mohanty as the CEO and MD of Jabong. Jabong is in competition with Flipkart-owned Myntra, Snapdeal and Amazon India’s online fashion retail.

Jabong