When was jabong com founded

While Mohan is expected to leave this month, Sinha may exit the company by the year end. But people cited above confirmed that both founders will be moving out of Rocket. Jabong, which recently shut its design office in London and is shifting its design hub back to India, is under pressure from its parent to focus on cutting losses. Jabong fired its people team in London and shut the office that designed its western private label, the three people said.

While the reason for the departures is not clear, Sinha, too, is believed to be starting a new venture, according to two people cited above. The group is pushing its portfolio firms to improve their financial matrix and achieve profitability ahead of a stock market listing, according to two of the three persons mentioned above.

Fashion is an important, high-margin product category for online retailers in India and marketplaces such as Flipkart, Amazon and Snapdeal are trying to increase their presence in the segment by offering aggressive discounts to win market share.

Jabong currently offers more than , products from 1, brands, including well-known international brands and its own labels. But while Jabong was neck and neck with rival Myntra until early , the latter has significantly increased its market share over the past 15 months or so. It was one of the most visited e-commerce sites during the Great Online Shopping Festival The company, which matched larger rival Myntra in sales until early , ceded market share since then.

The company struggled at multiple fronts, starting from senior-level churn at the organization to continuous erosion of market share. They left the company in Net revenue also did not see a healthy rise as online retailer saw sales grow moderately by 26 per cent to Rs This followed various series of top management appointments. But nothing seemed to work for e-tailer. Followed by a speculation about Sanjeev Mohanty quitting the ailing company to join Levis Straus.

With Jabong finally been bought by Flipkart, its still unclear whether Mohanty is still in the team or not. As per a Rocket Internet investor presentation, Jabong had a net revenue of For FY, its revenues were at Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. We will see Jabong-like valuation corrections happen across e-commerce in the next 12 months.

The talks were, however, called off later. Several other bidders queued in the following years, but the offer price for Jabong kept falling. One reason for this nosedive was that Jabong had begun losing out to Myntra, which was flush with funds from its new parent Flipkart.

Jabong also faced internal issues. In another blow, on July 18, The Economic Times reported that a forensic audit commissioned by investor Rocket Internet had shown several corporate governance violations by Sinha, Mohan, and former Rocket Internet India managing director Heavent Malhotra.

Despite all this trouble, there was merit in buying the company—but only at the right price. Jabong is not the only Indian e-commerce company to be devalued.