Flipkart Ltd has acquired online retail portal Jabong through its unit Myntra. According to a press release on the website of Global Fashion Group, the parent company of Jabong, the sale is for a consideration of $70 million.
The press release said, “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”
Myntra, which itself was acquired by Flipkart in 2014, will have access to a combined base of 15 million monthly active users. Jabong offers more than 1,500 international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from over a thousand sellers.
“The acquisition of Jabong further strengthens 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,” Myntra said in a statement.
Binny Bansal, the 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”
Jabong has been in the market for a sell-off for quite some time and was in negotiation with companies including Future Group, Snapdeal and Aditya Birla-owned Abof among others.
