Flipkart’s fashion unit Myntra, has finally acquired Global Fashion Group’s Jabong to become India’s biggest fashion destination. Earlier we had reported that Jabong is in initial talks with online retailer Snapdeal, Aditya Birla Group’s fashion portal abof.com and e-commerce marketplace Flipkart. Leading the talks was Kinnevik chief executive Lorenzo Grabau.
From the start of this year it was out in the open that the German group, Rocket Internet had been trying to exit its India businesses for a while. With owners AB Kinnevik and Rocket Internet reluctant to pour in more investments, online fashion retailer, Jabong had expedited its sales process. Now that it has happened finally, this acquisition will strengthen Flipkart Group’s position in Fashion and Lifestyle segment to compete with Amazon Fashion in India. With this, some global brands such as Dorothy Perkins, Topshop, Tom Tailor, G Star Raw will be exclusive to both the platforms.
Ananth Narayanan, CEO, Myntra says:
“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,”
Binny Bansal, CEO and Co-Founder, Flipkart, said in a statement:
“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,”
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.
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