Flipkart-owned Myntra said on Tuesday it has agreed to acquire main competitor Jabong from Global Fashion Group to create India’s biggest fashion e-tailer.
The deal consolidates Flipkart’s position in the Indian e-commerce market and enables Jabong parent Rocket Internet to exit the loss-making venture. The acquisition will also provide Flipkart some much-needed arsenal in its battle for market dominance with Jeff Bezos-led Amazon in the India e-commerce market.
Financial terms of the deal were not disclosed. Emailed queries sent to Jabong, Flipkart and Myntra in this regard elicited no response at the time of filing the report.
The development comes barely weeks after VCCircle first reported that Flipkart was the front-runner for acquiring Jabong.
“Fashion and lifestyle is one of the biggest drivers of e-commerce growth in India… This acquisition is a continuation of the group’s journey to transform commerce in India,” Binny Bansal, CEO and co-founder of Flipkart, said in a statement.
Myntra and Jabong will have a combined base of 15 million monthly active users. Jabong has about 1,500 international brands, sports labels, Indian ethnic and designer labels and 150,000 styles from over a thousand sellers, the statement said.
Some of the most iconic global brands that will be exclusive to both the platforms include Dorothy Perkins, Topshop, Tom Tailor, G Star Raw, Bugatti Shoes, The North Face, Forever 21, Swarovski, Timberland and Lacoste.
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, Myntra.
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