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 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 disclose the financial details of the deal.
“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,” 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.
The German Internet conglomerate also holds a large stake in food-delivery service FoodPanda in the country and sold its stake in online furniture retailer FabFurnish to Future Group in April this year. The firm is looking at more exits in India as its portfolio displays less-than-stellar performance.
“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 of Myntra.