Source: Agencies26 Jul 2016 12:53:47
Banglore, July 26: Flipkart Ltd has acquired online fashion portal Global Fashion group’s Jabong through its unit Myntra in order to become the king of online marketing. Flipkart announced this on Tuesday and also said this move will mark further consolidation in India's booming e-commerce industry. No financial details were disclosed. However no official statement from Jabong is released yet.
Global Fashion Group (GFG) has been looking for a buyer for more than a year now. GFG held discussions with several firms, including Snapdeal, Future Group, Aditya Birla Group and Amazon. 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.
Binny Bansal, CEO and Co-Founder, Flipkart, said, “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. 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.”
The acquisition also signals about a major consolidation that is about to shake up the entire e-commerce market in the coming months. This acquisition also will stop the issues in both the brands earlier related to the prices of products etc.
Ananth Narayanan, CEO, Myntra said, “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. We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle ecommerce in India.”
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. Swedish investment firm Kinnevik also owns a large stake in Jabong's parent Global Fashion Group. Jabong had a huge loss but managed to reduce the loss by reducing discounts on products. Meanwhile, with this acquisition consumers will get an advantage of thousands of products of many brands will be available on one single site.