Jabong is gearing for an organizational juggle wherein the current CEO Arun Chandra Mohan and Managing Director Praveen Sinha will be replaced. Rocket Internet seems to be looking out for fresh leadership to boost its stance in the ever expanding online retail market.
Arun and Praveen are expected to assume new roles in the organization; Rocket Internet has been pitching itself very aggressively in the market and intends to be the biggest Internet Platform outside the China and USA.
Rocket Internet is a German company headquartered in Berlin and is mostly involved online startup models. The company will also be losing one of its Managing directors Heavent Malhotra, who will be leaving to start out on his own.
In the recent times smaller sites like Jabong have been facing fierce competition from well-funded rivals like Myntra who can easily withstand high burn rates whilst acquiring the customers. TOI inside source reported that “Rocket is changing management of all their business, including Jabong”
Rocket Internet seems to have informed the Jabong staff of the upcoming changes in a town hall meeting at its Gurgaon office. An angel investor quoted that “Rocket is known to make structural changes at the top in most of its companies where it has invested” another source echoed the same and said that “Rocket has a history of shifting roles within its group”
Jabong is one of the India’s leading online fashion destination founded in 2010 by Mohan and other promoters. Although the company has doubled up its revenue to 811 crores in 2014, the discounting strategy and the price paid for customer acquisition has rocketed the loss to five folds.