Flipkart’s Myntra Acquired Jabong for $70 Mn, beating out Snapdeal & Future Group

Jabong, looking a buyer for over a year now has one finally. Beating other suitors like Snapdeal and Future Group, Flipkart owned Myntra has took over the online fashion store at $70 million, thereby maintaining its position as India’s No. 1 e-commerce giant up against Amazon India.

Picture Courtesy: www.datareign.com

Flipkart will pay cash for this take over. Fashion and lifestyle are the major driving force of e-commerce industry in India and this acquisition is the way of the group’s ongoing journey to change the trade in India. Through this, wide variety of products, styles and broad assortment of global and Indian brands can be made available to the public.

Picture Courtesy: www.datareign.com

At the year end of 2013, Jabong was worth $508 million and in March’ 14, its sales amounted to Rs. 438 Crore. However, it recorded a hike of 869 crore in sales as compared to last year, its value has decreased due to blend of leadership problems, market share losses and funding crisis.

Picture Courtesy: www.beyondjugaad.com

For Flipkart and Myntra, this will serve as a hike in sales especially when they are struggling to be market leader with Amazon India making rapid strides. Jabong provides more than 1500 international brands, sport labels and Indian ethnic and designer collection and over 15,000+ styles from more than 1000 vendors. The brand name built by Jabong was another name for fashion, it also created loyal customer base and had unique collection with exclusive global brands. Harmony among the brand relationships and consumer experience can be noticed between the two companies.

Jabong, who matched his rival in sales in the year 2014, has recorded a downsize of market share ever since as Myntra’s parent Flipkart has spent lavishly on its advertising and discounts policy in order to attract the customers. Jabong reported a 14% rise in its revenue to 11.9 million pounds for the quarter of March. Last year the company was hit by withdrawal of senior management executives, a funding problem and strong competition from Myntra and Amazon India.

Picture Courtesy: yourstory.com

In September’14, investors from Germany named Rocket Internet merged Jabong with 4 other online fashion retailer giants in Latin America, Russia, South- East Asia, Middle East and Australia to build CFG.

Blog Source: http://propertyfind.ae/flipkarts-myntra-acquired-jabong-for-70-mn-beating-out-snapdeal-future-group/