Global Fashion Group (GFG) has infused an additional $20 Mn into fashion ecommerce company Jabong, to keep it afloat for one more year, reported ET.
GFG was formed in 2011 by Swedish investment company, Investment AB Kinnevik and Germany’s Rocket Internet SE, that offers a wide assortment of international and local fashion brands, as well as a selection of internal brands.
Oliver Samwer, CEO of Rocket Internet and Deputy Chairman at GFG, was not in favour of continuing this venture. However, Investment AB Kinnevik insisted to stay put and eventually agreed to back Jabong.
In an emailed response to Inc42, Jabong’s CEO Sanjeev Mohanty said, “Jabong is a wholly-owned subsidiary of Global Fashion Group and receives funding on a regular basis, similar to the funding structure of other multi-national corporations. There are therefore no pre-agreed funding commitments, howsoever small or large. GFG has raised over $1.5 Bn in capital in its history and its Board remains unanimously committed to all regions it operates in, including India.”
He further added that 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 their current investment rate, are clearly evident of GFG’s commitment to growing Jabong as India’s most loved online fashion store.
He further added “We deny any other rumors or speculations that are to the contrary.”
Prior to this, the Gurgaon-based company merged With GFG and raised $35 Mn From Tengelmann & Verlinvest at the valuation of 2.8 Bn euros.
Just last month, the company’s largest warehouse, outside Gurgaon in Pataudi, faced major fire that almost destroyed the warehouse.
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