Global Fashion Group (GFG) which operates fashion retail site Jabong in India, is in talks with mobile payments and commerce company One97 among other eCommerce sites to sell off the online property. The deal amount is expected to be between $500-$800 million.
Sources familiar with the discussion told publication Livemint that Rocket Internet and Kinnevik owned GFG wants to sell off stake in the ‘money-losing Indian fashion store’ before the group goes public. The talks are being led by AB Kinnevik’s investment manager, Akhil Chainwala who is currently in India to meet Paytm founder Vijay Shekhar Sharma and top executives of the Aditya Birla Group, as per sources familiar with the matter.
GFG was founded in 2011 by Rocket Internet and Kinnevik, with a focus on emerging markets, including India, SEA, Latin America, Middle East and Russia. In September 2014, Rocket Internet merged Jabong with four other fashion brands that include- Dafiti (Latin America), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora (South East Asia and Australia) to create GFG that was valued at $3.5 billion (€2.7 billion). In April 2015, GFG had raised $35 million from Tengelmann Ventures and Verlinvest. And, in July, Rocket Internet had announced its participation in a $166 million internal financing round in Global Fashion Group (GFG).
As per documents filed with the Registrar of Companies, Jabong had raised more than Rs. 300 crores since the starting of this year. It currently offers more than 190,000 products from 1,800 brands, and reported sales of Rs.811.4 crore and a loss of Rs.454 crore for the year ended 31 December.
Few days back, there was a news that Jabong Co-Founders Arun Chandra Mohan and Praveen Sinha are leaving the company. Mohan confirmed the news of his departure to start his new venture in the Internet mobile segment. He is expected to leave this month, while Sinha may exit the company by the year end.