Flipkart-owned Myntra has bought rival Jabong for USD 70 million (around Rs 470 crore) – nearly half of its last year’s revenue – in a cash deal from Global Fashion Group (GFG) to
consolidate position in the booming Indian e-commerce industry.
While Myntra will benefit from Jabong’s stronghold in categories like women’s apparel, the transaction will allow GFG to “refocus its business on core markets.”
The transaction is subject to customary closing conditions and is expected to close during the third quarter. Other firms like Snapdeal, Future Group and Aditya Birla-owned Abof were also in fray to acquire Jabong.
Fashion and lifestyle is one of the biggest drivers of e-commerce growth in India. We have always believed in fashion and lifestyle segment and Myntra’s strong performance has reinforced this faithBinny Bansal, CEO and Co-Founder, Flipkart
This acquisition is a continuation of the group’s journey to transform commerce in India, he added.
Jabong has a lot of strengths. It gets 4 million monthly users, has many international brands. We will look at growing both the businesses and leverage capabilities. There are no plans of integrating the businesses yetAnanth Narayanan, CEO, Myntra to PTI
Narayanan added there were certain segments like women’s apparel and certain geographies where Jabong has a strong presence.
With this deal, Myntra will have access to a combined base of 15 million monthly active users. Jabong has over 1,500 international high-street brands, sports labels, Indian ethnic and designer labels from more than a thousand sellers.
Some global brands that will be exclusive to both the platforms include Dorothy Perkins, Topshop, Tom Tailor, G Raw Star, Bugatti Shoes, The North Face, Forever 21, Swarovski, Timberland and Lacoste.
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