Flipkart’s Myntra Has Bought Jabong For $70 Mn To beats out Snapdeal :- Flipkart-owned online fashion merchandise retailer Myntra has taken over its tiny rival Jabong as it seems to extend its portfolio and name in the high-margin online style retail scope. The move comes in action at a time when battling site Amazon is earning in billions of dollars to have a runway at fitting as the leader in India’s fledgling e-commerce area.
Snapdeal – which clashes directly with Flipkart – large-format retail enormous Future Group, Aditya Birla-owned Abof.com and others were also in the race to take over Jabong but Flipkart won the race. The organization in a report said the acquisition will further strengthen the position of the company as the “leading bit in fashion and lifestyle section” in the country. It did not reveal the business details of the contract.
“Fashion and lifestyle are one of the greatest whips of e-commerce germination in India. We have always considered the fashion and lifestyle section and Myntra’s powerful production has strengthened this belief. This grant is a restoration of the group’s mission to modify commerce in India,” said Binny Bansal, CEO of Flipkart, in a report.
The chic style retailer has been on the trading block as far back as November 2014 when it was in doing rounds with global e-commerce behemoth Amazon. The deal of Jabong will provide Rocket Internet with its first big exit in India.
The German Internet module also retains a large post in food-delivery assistance FoodPanda in the country and sold its maneuver in online furniture retailer FabFurnish to Future Group in April by this year. The company is seeking at more withdraws in India as its portfolio represents less-than-stellar doing.
“The deal of Jabong is a logical step in our quest to be India’s largest fashion program. We see important collateral between the two firms particularly on label relationships and consumer experience,” said Ananth Narayanan, CEO of Myntra.