Leading E-commerce giant, Flipkart acquires online fashion portal Jabong with its unit Myntra from Global Fashion Group, with the main focus on becoming India’s biggest fashion shopping stop.Flipkart acquires Jabong to strengthen their base in the field of E-Business.
Jabong.com is one of the top Indian fashion and lifestyle e-commerce portals, which sells footwear, beauty products, fashion accessories, fragrances, home accessories and other products. Global Fashion Group has been looking forward to the buyers more than a year. Most of the firms viz., Aditya Birla Group, Future Group, Snapdeal and Amazon, come forward as potential buyers, but Myntra lead on this acquisition.
In 2014, Flipkart acquired Myntra in an estimated ₹20 billion deal. Currently, Flipkart’s Myntra acquires Jabong portal. Sachin Bansal, Co-founder and Executive Chairman tweeted about Jabong on 25th July 2016.
— Sachin Bansal (@_sachinbansal) July 26, 2016
“Fashion and lifestyle are one of the biggest drivers of e-commerce growth in India. We have always believed in the fashion and lifestyle segment and Myntra’s high performance has reinforced this faith”. CEO and Co-Founder of Flipkart Binny Bansal said in a emailed statement.
There is no news about the financial terms yet. Nevertheless the previous report, the price far less than what Jabong expected. The report suggested that Jabong site was sold out for less than $50 million.
According to the Myntra CEO, Ananth Narayanan, “Jabong has built a strong brand that is synonymous with fashion, a loyal customer base and a unique selection of global exclusive brands. The acquisition of Jabong is a natural step in our journey to be India’s largest fashion platform. We see significant synergies between the two companies especially on brand relationships and consumer experience. We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle e-commerce in India.”
At late May, Jabong Reported a 14% increase in Revenue to €32.6 million for the March quarter. The Gurgaon-based firm’s adjusted Ebitda loss narrowed to €11.9 million from €16.3 million in the same quarter a year earlier.”