"The acquisition is a natural step in our journey to be India’s largest fashion platform."
India’s biggest online retailer Flipkart Ltd has acquired Jabong, the country’s major online fashion retailer, through its subsidiary unit Myntra.
The deal, finalised at US$70 million (£53 million), will be completed by the third quarter.
Jabong was once a major player in India’s online fashion industry. However, it recently took a backseat with poor sales.
Global Fashion Group, which owns Jabong, had been on the lookout for a buyer for over a year.
Several companies including Future group and Amazon were in the running.
But the new combination with Myntra should help the company strengthen its apparel portfolio, and take on increasing competition from Amazon Fashion in India.
Flipkart’s co-owner Binny Bansal says: “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 its faith.
“I am happy that now we will be able to offer millions of customers a wide variety of styles, products and broad assortment of global a well as Indian brands.”
Jabong offers more than 1,500 international high street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from over 1,000 sellers.
Some of the international labels available include Dorothy Perkins, Topshop, Forever 21, Timberland, Lacoste and Swarovski among others.
We’re thrilled to welcome @JabongIndia to the #Flipkart family. Here’s to a strong relationship and bold endeavors! pic.twitter.com/CyQ3YNs0nl
— Flipkart (@Flipkart) 26 July 2016
Flipkart acquired Myntra, an online fashion retailer, in 2014 for an estimated US$300 million (£228 million).
Their chief executive, Ananth Narayanan, says:
“Jabong has built a strong brand that is synonymous with fashion, a loyal costumer base and unique selection with exclusive global brands.”
“The acquisition of Jabong is a natural step in our journey to be India’s largest fashion platform.”
From their vast market presence, Flipkart will now have access to 15 million active users from Myntra and Jabong together.
Loading ...