Jabong Begins 2016 New Year With A Big Bang Registers Highest Ever M-O-M Net Revenue Growth Since Inception
With lowest cash burn in 24 months and best improvement in EBITDA margin in a EOSS month, targets to be India’s first e-commerce company to breakeven
Jabong, India’s leading online fashion retailer and one of the five fashion ecommerce companies operating within the Global Fashion Group (GFG), has announced that January 2016 has become its best month in terms of performance since the company was set up in 2011.
Jade eServices Pvt. Ltd., which runs Jabong in India, registered the highest-ever month-on-month (M-o-M) growth of nearly 35% in its net revenue for January 2016. The traffic to the Jabong app has also grown by 20% in this month.
Says Jabong CEO & MD, Sanjeev Mohanty, “2016 has started off on a momentous note for us with January becoming our most successful month yet, where we give a glimpse of the future of Jabong to our consumers, shareholders, business partners and competitors. What I have learned in the past 45-odd days at Jabong is that the basics of business remain the same across traditional and digital ecommerce if you have a strong grasp of the fundamentals of your business. While I am glad that my fashion background has come in handy, yet this incredible, record-shattering feat would not have been possible without the untiring efforts of our team.”
He adds, “With the lowest cash burn in the last 24 months despite the sale period, we are now targeting to be India’s first e-commerce company to break even without compromising on our top line. Some players in the industry hide their real performance behind the veils of lofty GMV figures. In those terms too, we touched $66m in GMV in January itself positioning us as the largest fashion ecommerce company in India, with a robust growth of 56% in our gross orders and 59% in gross items. At this rate, we will be within striking range of the $1 billion GMV mark by our year-end.”
Filings submitted with the Registrar of Companies show that Jabong’s growth in 2014-2015 was at 98%, which is nearly 20% more than its closest rival, while Jabong’s losses had shrunk to 40% lesser than theirs comparatively. In absolute figures too, Jabong’s net revenues were higher with a lesser cash burn. These numbers again reaffirm Jabong’s position as India’s largest pure-play fashion ecommerce player, and that it is slated to become profitable before any of its rivals. As India’s preferred fashion ecommerce brand, Jabong’s most recent growth indicators for January 2016 reinforce company’s accelerated growth rate as it transforms itself from being a start-up to a more professionally run, profit-oriented enterprise.