Rocket Internet's Indian venture Jabong.com is set to raise $100 million to support growth plans.
The investment includes $27.5 million of equity capital from British investment group CDC, it has been announced. But CDC's contribution is understood to be part of a wider fund raising plan, according to India's Economic Times.
CDC was founded in 1948 and is the UK's Development Finance Institution - wholly owned by the UK Government's Department for International Development (DFID).
The investment follows an estimated $40 million from Rocket Internet and $10 million from the European Founders Fund.
CDC said in a statement:'[The] investment will help to drive the growth of the business and enable development of the supply chain infrastructure and the technology platform in India, creating the potential to connect millions of customers with thousands of small suppliers.'
It described Jabong, which was launched in 2012, as the 'leading ecommerce platform' in India focused on the apparel and fashion segments. Half of Jabong's customers are located outside the major metropolitan areas.
Total sales in its most recent financial year are estimated to have been between $100 million and $150 million.
The Economic Times said Jabong's co-founder and managing director Praveen Sinha refused to comment on the development. It estimated the investment could value the company at about $150 million.
Founders of Jabong are estimated to own about 10 per cent of the firm while Rocket and other outside investors now control between 85 per cent and 90 per cent.
Jabong rival Myntra is also understood to be in the final stages of negotiations to raise Rs 300 crore. Meanwhile, late last year, Flipkart, the country's largest ecommerce company, raised Rs 2,250 crore which valued it at about $1.6 billion.
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