Jabong launched in 2012 as part of Rocket Internet's expansion into emerging markets. It quickly became one of India's top three fashion e-commerce players with millions of monthly visitors. Rocket Internet spent heavily on TV commercials and celebrity endorsements—$5-6M per month on advertising alone.
Company Data
- Founded: 2012 — Rocket Internet
- Total Funding: $200M+
- Monthly Marketing Spend: $5-6M
- Sold For: $70 million (2016)
Unit economics in Indian e-commerce were brutal: high marketing costs, deep discounting, 30-40% return rates in fashion, and expensive logistics. Jabong lost money on nearly every order. By 2016, Rocket Internet sold the business to Myntra for $70M—a fraction of capital invested. Under Myntra, the Jabong brand was eventually shut down and merged.
Key Lesson
E-commerce unit economics vary dramatically by market. High returns, low AOV, and expensive logistics make profitability extremely difficult in price-sensitive markets.