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.
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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, Jabong.com. “We have a very strong team to takeover and ensure smooth functioning,” Sinha added.
Featured and Lead Image Courtesy: Jabong.com