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Myntra acquires Jabong
Posted on: 27/Jul/2016 2:35:37 PM
Myntra has acquired Jabong for Rs 470 crore. Both these are fashion e-commerce portals. To note, Jabong belongs to Global Fashion Group. This move is likely to upsurge the booming e-commerce industry in India.
Flipkart acquired Myntra in 2014 for Rs 2000 crore. This now will have about 15 million active users with this combined base.
This will further strengthen Flipkart in the Fashion and Lifestyle sector in India. One of the major e-store selling multiple brand products of more than 1500 is Jabong. This includes high street brands, ethnic and designer labels in Indian styles, sports labels, etc. Brands that are found common in both these platforms are Tom Tailor, Bugatti Shoes, Forever 21, Timberland, Topshop, G Raw Star, Swarovski, Lacoste, etc.
This move is done with an aim of transforming commerce sector in India. We strive to make the country one of the leading platforms in fashion sector. A significant synergy is observed with these two countries, particularly on customer experience and brand relationships. We are excited about functioning with Jabong team for bettering fashion and lifestyle ecommerce in India, said the CEO of Myntra, Anant Narayan.
Jabong has been open to sell-off for quite some time. There had been discussions with companies like Snapdeal, Aditya Birla which owns Abof, Future Group, etc.
A bit more about Jabong
The company was founded in 2012. It was in the year 2014 that the investor Rocket Internet had combined it with Russia, Middle East, South east Asia, Australia, and Latin America for creating Global Fashion Group.
A large stake of Global Fashion, Jabong’s parent company is also with Kinnevik, a Swedish investment company. Jabong has been coping with its business by giving out offers.
Sources from the Internet and Mobile Association of India said there is 57 percent annual growth with e-tailing. This is evident from increase from Rs 24,046 crore to Rs 37,689 crore from December 2014 to December 2015. This is likely to meet Rs 72,639 crore by end of this year.
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