Jabong plans public listing either in India or US market

Jabong, the leading online fashion retailer, is gearing up for a public listing within the next

six to 12 months. The company is likely to choose one of its existing auditing partners: PricewaterhouseCoopers (PwC), EY (formerly Ernst & Young) or KPMG, as an advisor for the listing process. Though Jabong was planning to list on a bourse in the US or Europe, it might explore options in India as well. The fashion retailer is putting the processes and systems in place for a listing. Jabong, which started operations in 2012, houses more than 1,000 brands and generates annual sales of 300 million dollars (Rs 1,804.3 crores).

Before this, fashion e-retailer Koovs had listed itself on AIM (formerly Alternative Investment Market), a sub-market of the London Stock Exchange, to become the first Indian e-commerce company to go abroad for listing. Besides, other e-commerce companies like Snapdeal and Flipkart are also looking to list over the next 12 to 18 months.

At present, JustDial is the only listed internet-based company in India. As the e-commerce sector readies itself for a larger share of the retail market, top players are looking for better valuations. Listing abroad is a favorable option because of conducive regulations and greater exposure to the pool of investors. The biggest issue for e-commerce companies is achieving profitability. In India, getting listed can be tricky if the company is not profitable.