Jabong revenues soar 50 times to Rs 202 crores

Online retail platform Jabong, competing with biggies like Amazon and Flipkart in India, reported a rise in revenue by almost 50 times in 2012-13, while significantly cutting down its losses. During the fiscal year 2012-13, the net revenue of Jabong, the fashion portal operating under the name Xerion Retail rose to Rs 202 crores from Rs 4 crore in 2011-12, according to the data available with Registrar of Companies.

For 2012-13, Jabong narrowed its net loss to Rs 16 lakh, compared with a loss of Rs 67 lakh in the previous financial year. While the company has not filed its earnings for the year 2013-14, its rivals, Flipkart and Amazon registered a rise in losses. While Flipkart’s loss doubled to Rs 400 crores, Amazon’s net loss stood at Rs 320 crores.

Estimated at 2.3 billion dollars (about Rs 13,900 crores) at present, online retail accounts for just 0.4 percent of the overall retail market in India, according to retail advisory firm Technopak. By 2019, the e-tail market is expected to reach between 19 billion dollars (over Rs 1,14,000 crores) to 38 billion dollars (over Rs 2,29,000 crores), accounting for 2 percent to 4 percent of the overall retail industry.