Fashion e-tailer Jabong said it saw 50 percent revenue growth month-on-month in October, closing the month with positive unit economics for the first time in its history.
The Myntra-owned company achieved a positive gross profit for the first time ever, propelled by revenue growth and fulfillment cost reduction, Jabong said in a statement. However, the company did not specify the gross profit made or the total revenues for October.
“Jabong has closed October with the first ever positive unit economics month, becoming only the second online e-commerce company in India to do so after Myntra,” it added.
Jabong said the growth was accompanied by a surge in customer net promoter score (NPS) — a measurement of customer satisfaction — to 50 percent. The company held its sale in October and witnessed an increase in average order value by 10 percent.
Jabong has also witnessed an increase of 40 percent in app installations while new customer base has been growing, the statement said adding that over 1,300 marketplace sellers returned to its platform.
“Jabong has witnessed a strong turnaround. I am delighted that revenue growth is back on track, margins are getting better and the customer experience has significantly improved,” Jabong CEO Ananth Narayanan said.
Synergies with Myntra as well as cross learnings between the companies have helped accelerate customer acquisition and better customer experience, he added. Flipkart-owned Myntra had acquired Jabong in July this year for USD 70 million from Rocket Internet.