Flipkart-owned Myntra has acquired Jabong in a brokered deal, valuing the online fashion store of worth $70 million. The deal positions the name in a highly competitive place as a top e-commerce company and tends to quicken its revenue stream in the meantime.
Global Fashion Group (GFG) which retains Jabong has been searching for its purchaser for one year and issuing an announcement has uncovered the news that Flipkart beating claimants like Snapdeal, Future Group, Amazon, Aditya Birla Group, has picked up the obtaining.
Binny Bansal, Co-Founder at Flipkart appeared astounded by the performance and said that “This acquisition is a continuation of the group’s journey to transform commerce in India. I am happy that we will now be able to offer to millions of customers a wide variety of styles, products and a broad assortment of global as well as Indian brands.”
Despite the fact that the securing of Jabong further reinforces Flipkart’s position as the undisputed pioneer in E-commerce segment in India, the deal marks a standout amongst the stagiest falloffs in India’s online retail business.
Towards the end of 2013, Jabong was worth as much as $508 million and though its business expanded to Rs. 869 crore in the most recent financial year, Jabong’s worth has been hit by a mass migration of senior administrators, a funding stoppage and resilient rivalry from Myntra and Amazon India. The same is comprehended by the news of Verizon purchasing Yahoo for $4.83 billion, a much lower cost as Yahoo was envisioning worth of 125 billion in approx. under the terms of its assets.
Further, Jabong has been a solid brand synonymous with design, steadfast client base and exceptional determination of exclusive worldwide brands and when Flipkart is attempting to restore development and ensure its authority over the business sector, we can foresee at least something out of this procurement.
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