Jabong CEO And MD Quit, Management Looks Shaky

Rocket Internet backed fashion eCommerce company Jabong is looking for a new CEO. Current CEO and co-founder Arun Chandra Mohan and MD & Co-founder, Praveen Sinha are moving out of the company. Mohan has confirmed his exit citing the reason as working on his new venture in internet mobile segment. While Mohan is expected to leave this month, Praveen will leave by the year end. 

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The news sounds like further woes for the company that’s posted sales of Rs.811.4 crore at a loss of Rs.454 crore for the year ended 31 December.

Sources say that Mohan was constantly under pressure from Rocket Internet to perform, with the latter having pumped more than Rs.300 crore in Jabong in 2015. According to sources at Rocket Internet Jabong is the top money losing initiative for them.

Looks like trouble is brewing in the company’s top management. Last year Jabong’s other co-founders Mukul Bafana and Manu had also left the company.  With the latest exits, it’s clear that most of Jabong’s co-founders are well out of the company.

Additionally, the shakeup sounds like more trouble for the Berlin-based Rocket Internet, which also is the top investor in food ordering startup Foodpanda, currently under the scanner for their faulty operations, lack of clarity in the ordering supply chain and a similar shakeup in the top management with most of its top executives having departed in the last one year.