Online fashion player Jabong is all set to take on other players in the fashion vertical this year. The company has announced that January 2016 has been its best performing month since the company was set up in 2011.
Jade eServices Pvt Ltd, which runs Jabong in India, registered the highest ever month-on-month (M-o-M) growth of nearly 35 per cent in net revenue for January 2016. The traffic to the Jabong app has also grown by 20 per cent this month, the company said in a statement.
Jabong CEO & MD, Sanjeev Mohanty, said: “2016 has started off on a momentous note for us with January becoming our most successful month yet, where we gave a glimpse of the future of Jabong to our consumers, shareholders, business partners and competitors. What I have learned in the past 45-odd days at Jabong is that the basics of business remain the same across traditional and digital e-commerce if you have a strong grasp of the fundamentals of your business. While I am glad that my fashion background has come in handy, yet this incredible, record-shattering feat would not have been possible without the untiring efforts of our team.”
He adds, “With the lowest cash burn in the last 24 months despite the sale period, we are now targeting to be India’s first e-commerce company to break-even without compromising on our top line. We touched $66m in GMV in January itself, positioning us as the largest fashion e-commerce company in India, with robust growth of 56 per cent in gross orders and 59 per cent in gross items. At this rate, we will be within striking range of the $1-billion GMV mark by our year-end.”
Filings submitted with the Registrar of Companies show that Jabong’s growth in 2014-2015 was at 98 per cent, which is nearly 20 per cent more than its closest rival, while Jabong’s losses had shrunk to 40 per cent lesser than theirs comparatively. In absolute figures too, Jabong’s net revenues were higher, with a lesser cash burn. These numbers again reaffirm Jabong’s position as India’s largest pure-play fashion e-commerce player, and that it is slated to become profitable before any of its rivals.