Myntra Took Over Jabong

Flipkart, the leading group in online shopping market for maintaining its legacy in online market took over Jabong through its unit Myntra, leaving back the other suitors such as Snapdeal. The financial details have not been made public yet.

Global Fashion Group(GFG), the owner of Jabong had been looking for a company to sell its firm for more than a year. GFG had discussions related to this with other e-commerce retailers Snapdeal, Amazon as well as Future Group and Aditya Birla Group.

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.”

At the end of 2013, Jabong was nearly worth of $508 million. By the end of March 2014, Jabong reported the sales of Rs. 438 crore. In spite of getting the increment to Rs. 869 crore in the last Financial Year, Jabong got its value collapsed because of having some leadership issues, funding crunches, and significant share losses.

After the acquisition of Jabong, Flipkart-Myntra will have a boost in sales which holds importance since currently, Flipkart is struggling hard to attain its growth and to protect its leadership of past so many years whereas Amazon is getting ahead in the marathon.

Jabong delivers more than 15,00 international brands, sports labels, Indian ethnic and designer labels and over 15,000 styles from more than a thousand salers.

Ananth Narayanan, chief executive of Myntra said, “Jabong has built a strong brand that is synonymous with fashion, a loyal customer base and a unique selection of 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.”

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