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Flipkarts’ Myntra acquires Jabong

By Meenakshi Kumar

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After signing a definitive agreement for a deal, Myntra (a Flipkart unit) has announced it has acquired Jabong from Global Fashion Group to create India’s biggest fashion shopping destination. For some time, Jabong has been in the news for a sell-off and its owners had held talks with several companies including Future Group, Snapdeal, Aditya Birla-owned Abof among others. Myntra’s acquisition of Jabong would further strengthen its parent company Flipkart’s position as the undisputed leader in fashion and lifestyle segment in India, the company said in a statement. Experts say, the acquisition signals a major consolidation that is about to shake up the entire e-commerce market in the coming months.

Ananth Narayanan, CEO, Myntra has said in a statment, “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 by German incubator Rocket Internet in 2012. Swedish investment firm Kinnevik also owns a large stake in Global Fashion Group that owns Jabong.

Jabong, once a shining star of online retailing in India, in the last one year was going through tough times amid falling sales and management changes. Last year, after Jabong's co-founders Arun Chandra Mohan and Praveen Sinha quit, and the owners of the company hired Benetton veteran Sanjeev Mohanty as its new CEO. In February, it was reported that Rocket Internet had proposed to Future Group's Kishore Biyani about Jabong when the two were in discussions over online furniture seller FabFurnish. Though Future Group bought out FabFurnish in April for about Rs 15 crores, it declined the Jabong offer then.

Flipkart
Jabong
Myntra