Flipkart has acquired online fashion portal Jabong. The financial details of the deal were not disclosed.
Snapdeal, Aditya Birla Group and Future Group were some of the potential buyers for the Jabong. Flipkart has acquired Jabong which is owned by Global Fashion Group (GFG), via Myntra.
Binny Bansal, co-founder of Flipkart said,Fashion and lifestyle is one of the biggest drivers of e-commerce 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. I am happy that we will now be able to offer to millions of customers a wide variety of styles, products and a broad assortment of global as well as Indian brands.
Flipkart had acquired Myntra in 2014 at an estimated Rs. 2000 crores which was one of India’s biggest e-commerce deals. The company stated that Myntra and Jabong will have a combined base of 15 million monthly active users. Launched in 2012, Jabong was seeking a buyer for some time and had cut down its losses to Rs 46.7 crore in 2015 from Rs 159.5 crore in 2014.
Ananth Narayanan, CEO, Myntra said,Jabong has built a strong brand that is synonymous with fashion , a loyal customer base and a unique selection with exclusive global 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.
The Jabong acquisition will help Flipkart gain foothold in the fashion online fashion space which is getting crowded with new players like Abof.com and others.
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