UK-based CDC Group invests $27.5M in lifestyle e-tailer Jabong
Gurgaon-based lifestyle fashion and apparel e-tailerJabong.com has raised $27.5 million in equity funding from UK-based development finance institution (DFI), CDC Group plc. The capital will help Rocket Internet-backed Jabong to drive its business growth as well as enable the development of its supply chain infrastructure and technology platform.
According to a report by The Economic Times, this is part of Jabong's plans to raise a larger round of funding worth $100 million, adding that the CDC deal could value Jabong at about $150 million. As per this report, Rocket Internet could have committed up to $40 million, while European Founders Fund has invested $10 million in Jabong so far.
Launched in January 2012 by Arun Chandra Mohan, Praveen Sinha, Manu Jain and Mukul Bafana, Jabong is a leading e-commerce platform in India. The platform connects consumers with more than 4,000 local manufacturers within the country. The firm has already secured millions of customers throughout India, more than half of whom are located outside major metropolitan areas.
For CDC Group, this could be very likely the first technology investment in India. Some of CDC's recent direct deals include microfinance company Equitas and renewable energy developer Green Infra.
Established e-commerce firms have been raising large rounds of funding over the last year as leaders in the industry have started to emerge. For Jabong, this funding comes as another apparel e-tailer Myntra is set to unveil its mega round of funding.
In October last year, Flipkart.com, India's largest consumer e-commerce player, had raised an additional $160 million in the fifth round of funding started in July this year, from new investors, including Belgium-based Sofina, US-based Morgan Stanley Investment Management, Dragoneer Investment Group and Vulcan Capital (founded by Microsoft co-founder Paul Allen), along with participation from existing investor Tiger Global. With the second phase, the total capital raised from the fifth round reached $360 million.
(Edited by Joby Puthuparampil Johnson)