After months of rumours and meetings, finally, Jabong got a potential buyer. Flipkart’s fashion unit Myntra is acquiring Jabong. This acquisition is important for Myntra which is aiming to become profitable by next year. At the time of writing this post, it was not confirmed how much money Flipkart paid to acquire Myntra. Finally, it is confirmed that Flipkart paid $70 million in cash. Jabong will still continue to work as a separate entity.
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Jabong was founded in 2012 and incubated by Germany-Rocket Internet. It sold apparel, footwear, beauty products, fashion lifestyle products, and home accessories. It was successfully running its business initially but lose market to Myntra and other new online stores in recent years.
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Jabong was also in talks with other companies including Future Group, Snapdeal, Aditya Birla – owned Abof for the acquisition but Flipkart managed to steal the deal.
Flipkart’s CEO Sachin Bansal confirmed this deal on Twitter.
Welcome @JabongIndia to the @Flipkart family. We’ll create history together.
— Sachin Bansal (@_sachinbansal) July 26, 2016
“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,” said Ananth Narayanan, CEO, Myntra. “We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle ecommerce in India,” he added.
This acquisition will strengthen Flipkart Group’s position in Fashion and Lifestyle segment to compete with other rivals in market.
Source: ET
