Despite all the talk about a global slowdown and Rocket Internet in particular, some companies seem to be having a surprisingly good time. And literally out of the blues, online retailer Jabong is one of those lucky ones as the company has announced January 2016 to be its best month in terms of performance, in the almost half a decade old history of the company.
According to Jabong’s own stats, provided to us by the company itself, it is having an extraordinarily good run of late. Not only did it record its lowest cash burn in 24 months and best improvement in EBITDA margin in a EOSS month, its parent company Jade eServices Pvt. Ltd. also registered a staggering month-on-month growth of almost 35 percent.
The Jabong app also did its bit in gilding the lily by recording a 20 percent traffic increase. A bunch of innovative features, including Favshop, Shop the Look, Ask a Friend along with services like express delivery, 15-days return policy, and open box delivery helped the company show up with great figures on its report card.
Speaking on the topic, 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 give a glimpse of the future of Jabong to our consumers, shareholders, business partners and competitors.
Talking about how he learnt key differentiators in the E-commerce segment, Mohanty adds,
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 ecommerce 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 also said that the company has set its eyesight upon becoming India’s first e-commerce company to break even. A lofty goal to be sure, considering the current scenario.
However, Mr.Mohanty is undaunted and boosted perhaps by the recent figures, is also looking to touch $1 Billion in GMV.
We touched $66m in GMV in January itself positioning us as the largest fashion e commerce company in India, with a robust growth of 56% in our gross orders and 59% in gross items. At this rate, we will be within striking range of the $1 billion GMV mark by our year-end.
Well, we would all like a company that would actually produce some returns, to set an example for others.
If things stay on track, Jabong may just end up becoming the first company to touch the magic ceiling. The company had an extremely impressive 98% growth in the 2014-2015 period and its losses had shrunk to almost 40% lesser than rivals.
The recent figures are bound to go a long way in strengthening the commitment of both people within the company, as well as investors.