Flipkart Acquires Jabong Through Fashion Portal Myntra [ Current Affairs ]
Flipkart acquired online fashion portal Jabong through its fashion unit Myntra. Jabong was acquired by Flipkart in a cut-price deal that values the online fashion store at 70 million dollars.
- This acquisition will help Flipkart to strengthen its place in Fashion and Lifestyle e-commerce segment in order to compete with Amazon Fashion in India.
- Flipkart Ltd has acquired Jabong through its unit Myntra in a cut-price deal that values the online fashion store at $70 million, moving to preserve its India’s No. 1 position as e-commerce marketplace in the face of an onslaught by Amazon India.
- Jabong was founded in 2012 and held by Global Fashion Group (GFG).
- It offers more than 1, 500 international high-street brands, Indian designer sports, labels and ethnic labels and over 150, 000 styles from more than 1, 000 sellers.
- Jabong was merged with four online fashion retailers in Latin America, Russia, South-east Asia and Middle East to create GFG by its investor Rocket Internet in September 2014.
- Flipkart, which beat other Jabong suitors such as Snapdeal, will pay cash for the acquisition, according to a statement by Global Fashion Group (GFG), which owns Jabong.
- GFG has been looking for a buyer for Jabong for more than a year now. GFG held discussions with several firms, including Snapdeal, Future Group, Aditya Birla Group and Amazon.
- Published on: July 27, 2016