Jabong plans to raise 100 million dollars funds

Online fashion retailer Jabong is planning to raise around 100 million

dollars (over Rs 600 crores) through a fresh round of equity funding. The company is said to have already received 27.5 million dollars (over Rs 170 crores) from British development finance institution CDC. With the raised funds, the company wants to strengthen its supply chain infrastructure, as well as its technology platform.

Sources claim that CDC had announced the deal on its website last week. Experts point out, the deal could value the company at about 150 million dollars (over Rs 900 crores) and the founders may look at further diluting their stake-which is currently estimated at about 10 percent. Rocket Internet and other investors are said to be having between 85 percent to 90 percent stake in the company.

Recently, ignoring Flipkart’s merger offer, Myntra, another leading e-commerce platform, raised about 50 million dollars (over Rs 3,000 crores) through PremjiInvest. Ihat investor interest is quite high in the online fashion retailing. As per industry estimates, branded apparel attracts up to 45 percent margins and private labels are able to bring in even higher margins of about 60 percent.