Flipkart buys Jabong, beats out Snapdeal, Future Group

Flipkart buys Jabong, beats out Snapdeal, Future Group

Flipkart-owned online fashion retailer Myntra has acquired smaller rival Jabong as it looks to strengthen its portfolio in the high-margin online fashion retail space. The move comes at a time when rival Amazon is pumping in billions of dollars to have a run at becoming the leader in India’s fledgling e-commerce space.

Snapdeal – which competes directly with Flipkart – large-format retail giant Future Group, Aditya Birla owned Online shopping and fashion store. Shop the latest fashion trends online | abof.com and others were also in the running to acquire Jabong. The company in a statement said the deal will further strengthen its position as the “leader in fashion and lifestyle segment” in India. It did not disclosing the financial details of the deal.

“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. This acquisition is a continuation of the group’s journey to transform commerce in India,” said Binny Bansal, CEO of Flipkart, in a statement.

The fashion retailer has been on the selling block as far back as November 2014 when it was in talks with global e-commerce giant Amazon. The sale of Jabong will provide Rocket Internet with its first big exit in India. more