Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal. In order to maintain their position in market, Flipkart always come ahead and take a perfect move. This time, Flipkart has acquired Jabong through its unit Myntra. Initially they have not disclosed amount of this deal but now the news is coming that the deal has been finalized in $70 million and Flipkart has agreed to pay all cash. (According to Global Fashion Group).
In a statement, Myntra said-
“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.”
Flipkart CEO and co-founder Binny Bansal said-
“Fashion and lifestyle is one of the biggest drivers of ecommerce growth in India. We have always believed in fashion and lifestyle segment and Myntra’s strong performance has reinforced this faith.”
He also posted on Twitter-
— binnybansal (@binnybansal) July 26, 2016
Sachin Bansal, Co-founder& Executive Chairman of Flipkart also posted on Twitter-
— Sachin Bansal (@_sachinbansal) July 26, 2016
Ananth Narayanan, chief executive, Myntra-
“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.”
Global Fashion Group has been looking for a buyer for Jabong more than a year now and it was in discussion with companies including Future Group, Snapdeal and Aditya Birla-owned Abof among others. But finally Flipkart acquires it.
Jabong was founded in 2012. In September 2014, its investor, Rocket Internet merged Jabong with four other online fashion retailers in Latin America, Russia, the Middle East, South-east Asia and Australia to create Global Fashion Group (GFG). Swedish investment firm Kinnevik also owns a large stake in Jabong’s parent Global Fashion Group.
As per a Rocket Internet investor presentation, Jabong had a net revenue of 32.6 million euros in Q1 2016, up 14% from 28.6 million euros in the year-ago period. For FY2015, its revenues were at 122.1 million euros.