Flipkart announced its acquisition of Jabong from Global Fashion Group for an undisclosed amount on Tuesday. Other competitors which wanted to take over the fashion portal included Future Group, Snapdeal and Aditya Birla’s Abof. This makes Flipkart the biggest fashion shopping destination in India.
Co-founder of Flipkart Sachin Bansal took to Twitter to confirm the acquition. His tweet read, “Welcome @JabongIndia to the @Flipkart family. We’ll create history together.”
— Sachin Bansal (@_sachinbansal) July 26, 2016
Co-founder Binny Bansal also tweeted, “Today, @Myntra got bigger! Delighted to welcome @JabongIndia to the @Flipkart group!”
— binnybansal (@binnybansal) July 26, 2016
Binny also reportedly 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.” He added, “This acquisition is a continuation of the group’s journey to transform commerce in India.”
The acquisition will allow Flipkart to host some global brands, like Dorothy Perkins, Topshop, Tom Tailor, G Star Raw, which previously had exclusive contracts with Jabong.
“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,” CEO of Myntra Ananth Narayanan said. “We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle ecommerce in India.”
Jabong, which launched in 2012, offers products from more than 1,500 luxurious labels for Indian wear, sports and designer labels. The sale is attributed to declining revenue and changes in the top management. Jabong doesn’t offer discounts anymore as it’s looking to recover losses of nearly ₹46.7 crore in 2015 and ₹159.5 crore from 2014.