Jabong secures $27.5 million growth capital from UK based CDC Group

The funding comes right after a number of major happenings in the Indian e-commerce space in the last few months. e27 examines the roller coaster ride

By Saloni Surti


UK based development finance institution CDC Group has announced investing US$27.5 million of equity capital into Indian fashion and lifestyle website, Jabong. According to CDC’s legal announcement, the investment is a part of Jabong’s larger funding round which is not made public yet.

According to a report in The Economic Times, India’s one of the leading financial newspapers, Jabong is raising a fresh round of equity funding, estimated at $100 million (Rs 628 crore), of which it has received $27.5 million (Rs 173 crore) from CDC.

CDC states that the investment will be used to drive the growth of the business and enable development of the supply chain infrastructure and the technology platform in India. The expansion capital is expected to create growth and improve conditions of the workers.

The recent capital will also facilitate new business start-ups by providing quick and efficient access to the largely untapped pan-Indian e-commerce marketplace.

The funding comes close on the heels of the news of Jabong’s competitor website, Myntra being in conversation with investment firm, PremjiInvest, for a funding of $50 million. Reportedly, the decision was taken by Myntra to thwart a merger proposition by India’s leading e-commerce website, Flipkart.

For the record, Jabong was incubated by Germany based Rocket Internet and was launched in January 2012.

Read Also: The Indian e-commerce saga: A look at the year that was

Sudden talent dearth
Jabong in the past weeks has seen two of its co-founders quitting the company. According to a report by Medianama, Jabong’s co-founders and managing directors – Mukul Bafna and Manu Kumar Jain quit the organisation almost a month ago.

While Bafna is planning to join his family business, Jain is expected to start his own venture Gynjer which will design, develop and sell wearable smart devices. Jain remained unavailable for comments.

“Both Manu and Mukul decided to part ways due to personal reasons at different time intervals and explore new opportunities for themselves,” said Praveen Sinha, Co-Founder, “We have a very strong team to takeover and ensure smooth functioning,” Sinha added.

Featured and Lead Image Courtesy:

  • HomeShop18
    HomeShop18 India HomeShop18 operates a leading digital commerce platform in India, with a combined reach of over 250 million consumers, accessed through the integrated television, Internet and mobile device channels. Funding: 21M Post IPO Equity Investors: SAIF Partners
  • Jabong
    Jabong India is the best Online shopping Portal in India for men, women & kids for shoes, clothing, watches, sunglasses. Funding: Undisclosed Acquisition Investors: Myntra
  • Zovi
    Zovi India is an apparel brand available exclusively online. They bring premium apparel designed with top-notch components to their customers across men's and women's categories.

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