Myntra acquires rival fashion portal Jabong for $70mn

Strengthening its position as the undisputed leader in online fashion and lifestyle segment in India, Bengaluru-based Flipkart has acquired online fashion portal Jabong from Global Fashion Group(GFG) through its arm, Myntra, beating the likes of Snapdeal, Future group, and Amazon. The acquisition undoubtedly creates India’s biggest fashion shopping destination.

Flipkart Group has agreed to take Jabong from GFG for US$70 million in cash.

“Fashion and lifestyle are one of the biggest drivers of e-commerce growth in India. We have always believed in the fashion and lifestyle segment and Myntra’s strong performance has reinforced this faith. 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,” said Binny Bansal, co-founder of Flipkart.

Jabong is among India’s major fashion multi-brand e-store with more than 1500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from over a thousand sellers. Together the two giants are set to re-define the next generation of online shopping with a combined base of 15 million monthly active users and offering the best of brands to Indian consumers.

“Jabong has built a strong brand that is synonymous with fashion, a loyal customer base and a unique selection of 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,” said Ananth Narayanan, chief executive, Myntra.