Online lifestyle retailer Jabong has suffered a gross loss Rs 46.7 crores for the year 2015 on the back of big discounts. As big a number as it seems, it’s an improvement from 2014, when the company suffered a gross loss of a whopping Rs 159.5 crores. However, the company’s net revenue rose by 7.1 per cent to Rs 869.1 crores in 2015 from Rs 811.4 crores in 2014.
“Gross profit margin improved by 14 pp (percentage points) driven by lower level of discounts,” said the online retailer’s parent company Rocket Internet in an investor presentation on 14 April, 2016.
“For the fourth quarter of 2015, the company’s gross loss declined to Rs 1.9 crores as against Rs 45.9 crores in the same quarter last year.
The increased focus on gross profit margin, unit economics and overall profitability resulted in net revenue and GMV decline in Q4 2015 vs Q4 2014,” it added.
