Jabong acquired by Flipkart’s Myntra for $70 million

July 26, 2016

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Online shopping in India is currently at its peak. As compared to window shopping, online shopping gives you benefits like home delivery, 15-30 days return/exchange, refund service, pick-up service etc. There are a number of website which are acquiring the market and are doing absolutely great in the country and worldwide. From numerous online websites that have started up, there are a few like Amazon, Myntra, Jabong, Flipkart, Abof etc which have established themselves to a level which other would take years to meet. But seeing the soaring competition in the market, the giants take over the ones which slowly yet gradually can become a theft to them.

It was in May 2014 when Flipkart has acquired online fashion retailer Myntra in an estimated Rs 2,000 crore deal. Now, taking it a step ahead, Flipkart’s Myntra has acquired the online shopping retailer Jabong for approximately $70 million. The press release on the official website of website of Global Fashion Group says, “Global Fashion Group (GFG) has entered into a definitive agreement to sell Jabong, its Indian business, to Flipkart Group for US$70 million in cash. The transaction is a decisive step in GFG’s strategy to refocus its business on core markets and further accelerate its path to profitability.”

Ananth Narayanan, CEO, Myntra said, “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 ecommerce in India,” he added.

Myntra said in a statement, “The acquisition of Jabong further strengthen Flipkart Group’s position as the undisputed leader in Fashion and Lifestyle segment in India. Jabong is among India’s major fashion multi-brand e-store with more than 1,500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 1,50,000 styles from over a thousand sellers.”
Binny Bansal, CEO and Co-Founder, Flipkart said, “Fashion and lifestyle is one of the biggest drivers of ecommerce growth in India. We have always believed in the fashion and lifestyle segment and Myntra’s strong performance has reinforced this faith. This acquisition is a continuation of the group’s journey to transform commerce in India.” The CEo further took it to the micro blogging site twitter to express his happiness. He tweeted, “Today, @Myntra got bigger! Delighted to welcome @JabongIndia to the @Flipkart group!”

Also, Sachin Bansal, the executive chairman of Flipkart tweeted, “Welcome @JabongIndia to the @Flipkart family family. We’ll create history together.”