In an industry where not much data is available given most companies are unlisted, we have got some details from Rocket Internet which has stake in Jabong (fashion) & FabFurnish (furniture).
Jabong’s Gross Merchandise Value (GMV) rose 136% yoy in CY14 leading to a 136% yoy increase in net revenue. Encouragingly, Jabong indicated that majority of the orders are being placed by repeat customers. FabFurnish’s GMV too rose 125%yoy during the same period. Jabong’s gross loss expanded to Rs1.6bn (+400%yoy), indicating high competition. Capex intensity has risen from 3.7% capex/sales in CY13 to 4.8% in CY14 on investment in IT and infrastructure. Net working capital too rose by ~250%yoy driven by growth in inventory.
Jabong.Com Financials / Operations Metrics
FabFurnish Financials / Operations Metrics
Our findings from the report reinforce our view of the large & long-term opportunity in India Internet sector which is currently seeing high competition & needs investment.