Flipkart-owned online fashion portal Jabong has witnessed the revenue of Jade EServices dropped by 13 per cent in last fiscal, according to TOI report, which sourced data from ROC.
Jade Eservices, which is one of the largest sellers on Jabong, reported revenues of Rs 757 crore in the financial year 2017 compared to Rs 873 crore in the FY16.
Besides, Jabong additionally generated Rs 100 crore in revenue for providing marketplace services.
The fall in revenue report comes as the company is expecting to see a higher revenue growth of 55 per cent during FY19.
“Growth for FY18 is estimated at 34.5 per cent from a negative growth of 16 per cent (according to us it’s 13%) in FY16-17, so the effective growth for FY18 is at 50 per cent,” Ananth Narayanan, CEO, Myntra and Jabong earlier told ET.
Meanwhile, Flipkart’s primary seller WS retail and its fashion arm Myntra’s former vendor Vector E-commerce have also reported a sharp fall in revenues.
WS Retail recently posted revenue of Rs 4,543 crore, a fall of 67 per cent in FY 17 compared with Rs 13,921 crore in the previous fiscal, as per the company’s regulatory filings.
Vector E-Commerce also witnessed a 30 per cent slump in overall revenue from FY16 to FY17. Vector ECommerce was fully acquired by WS Retail for Rs 26 lakh in January 2017.
However, the revenue fall in WS Retail and Vector E-commerce is the result of the government’s 25 per cent cap on sales per vendor for marketplaces in March 2016.
Last January, Myntra changed its legal structure in order to comply with foreign direct investment (FDI) laws that cap a third-party seller’s contribution to 25 per cent of its sales. The online fashion platform added three new sellers on its platform. The three new sellers on its platform are Shreyash Retail, Health and Happiness and Tech Connect Retail.