The Rocket Internet-backed online fashion retailer Jabong has registered a loss of Rs 113.9 crore in the first quarter of this year against a loss of Rs 69.4 crore a year earlier.
Its gross merchandise value (GMV) increased by 54% to Rs 35.5 crore compared to Rs 23.05 crore in the same quarter last year. GMV is the combined value of all the sold products, which does not include discounts, returns and damages.
Even though this quarter saw an increase in its loss compared to the first quarter last year, the net revenue increased to Rs 199.20 crore. However, on comparison with its peers in the fashion category, it showed the least growth in the revenues at 35.9%. The German investor had clubbed all its five fashion portfolio companies under one umbrella called Global Fashion Group (GFG).
All the e-commerce players such as Flipkart, Amazon and others are burning huge cash everyday on discounts, free delivery, returns, etc—which certainly increases sales, but plummets the loss even further. GFG had recently raised $167 million by Rocket Internet and Kinnevik, which will be allocated to different businesses in the group according to their requirements.