Jabong, India’s leading online fashion retailer said January was its best month since inception in 2011 and it registered the highest month-on-month growth of almost 35% in net revenue and clocking a gross merchandise value of $66 million, which is far more than it’s a competitor Myntra.
According to the company, traffic to the Jabong app increased 20% in January. The GMV positions Jabong as the largest fashion e-commerce company in India, according to Sanjeev Mohanty, recently appointed a managing director.
“At this rate, we will be within striking range of the $1 billion GMV mark by our year-end,” Mohanty said. “With the lowest cash burn in the last 24 months despite the sale period, we are now targeting to be India’s first e-commerce company to break even without compromising on our top line.”
Gurgaon-based Jabong plans to bring in a new pricing mechanism to cut losses, which widened to Rs 43.6 crore in the year ended March 2015, according to filings with the Registrar of Companies. It aims to cut discounts by selecting better products and is looking at creating efficiencies at various levels such as warehousing and supply chain.