JOIN USBolstered by 50% growth in its net revenues, Jabong has announced that October has become its first gross profit positive month. It is only the second ecommerce company to have achieved the feat, after its parent company Myntra.
Jabong Chief Executive Officer Ananth Narayanan said, “A lot of structural changes have led to the growth in revenues. We have worked on significant reduction of supply chain costs. Similarly, the amount of discounts have been reduced, while we have improved selection and range of products on the platform,” adding that maintaining positive unit economics is therefore sustainable for the company.
A growing customer base ensured a 40% in app installations, while its ‘Big Brand Sale’ witnessed an increase in average order value by 10%.
The company intends to keep up the momentum in the coming months by introducing new brands and focusing on full price sales.The platform has already launched two marquee brands — All About You by Deepika Padukone and Roadster.
The CEO further said, “As per our targets, we should hit profitability by end of next year. By January 2018, both Myntra and Jabong should become profitable.”