Flipkart-owned online design retailer Myntra has acquired littler opponent Jabong as it hopes to fortify its portfolio in the high-edge online form retail space. The move comes during an era when rival Amazon is pumping in billions of dollars to have a keep running at turning into the pioneer in India’s youngster e-trade space.
Snapdeal – The Future Group, Aditya Birla Company- which contends specifically with Flipkart –was also contending strongly to acquire Jabong But Flipkart finally managed to be the winner for closing this deal.
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Let’s look at these official Tweets:
— Sachin Bansal (@_sachinbansal) July 26, 2016
— binnybansal (@binnybansal) July 26, 2016
Flipkart says that this deal will further strengthen its position as the “leader in fashion and lifestyle segment” in India. Though there is no disclosure of the financial details of the deal.
Here is what Binny Bansal, CEO of Flipkart, said in a statement:
“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,”
“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,” said Ananth Narayanan, CEO of Myntra.
Jabong is one of various companies that are run by Rocket Internet, a German Internet company. It was founded in 2012. Besides, Swedish investment firm Kinnevik also owns a large share in Global Fashion Group that owns Jabong.
The design retailer has been on the offering obstruct as far back as November 2014 when it was in chats with worldwide e-business monster Amazon. The offer of Jabong will furnish Rocket Internet with its first huge way out in India.
What’s your views on this acquisition, share in the comment section below.