Online fashion portal, Jabong will be launching its first ‘Jabong Lab’ in Bengaluru this week. For this purpose, the company plans to hire 100 employees with strong technology credentials to work across multiple projects, out of which 25 people have already been hired. Also, it has a separate research and development center in Gurgaon.
As per ET report, “The main focus of the lab is to innovate and focus on a lot of features using information technology and create a centre which focuses more on innovations three or five years ahead of what we’re doing today,” said Praveen Sinha, chief executive of Jabong.
It appears that finally the Indian online retailers are taking the technology aspect in ‘e’ commerce seriously. Companies like Flipkart, Myntra etc. have faced outages during heavy traffic periods due to technological shortcomings, investment in technology will be one of the most important differentiation point for these players.
Jabong is a part of Global Fashion Group (GFG) after its investors Berlin-based startup incubator, Rocket Internet had merged 5 emerging fashion brands into a single entity with its co-investor, Kinnevik. The merged entity GFG has worth of about USD 3.5 billion. Currently, Jabong is valued at more than USD 500 million, as per a regulatory filing by Rocket Internet.
In November 2014, there were rumors that Amazon would acquire Jabong in a deal amount worth USD 1-1.2 Billion, however no further development has been issued.
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