Putting a full-stop to all assumptions, Flipkart-owned Myntra has acquired Jabong in a deal valued at $70 million. As of now, Jabong will continue to work as an independent enterprise while the long-term investors Rocket Internet and Kinnevick have backed out.
Ananth Narayanan, CEO, Myntra, said:
Jabong has built a strong brand that is synonymous with fashion, a loyal customer base and a unique selection with 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. We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle ecommerce in India.”
The two combined will now cater to a base if 15 million monthly active users, according to the statement.
Source: Your Story
Binny Bansal, CEO and Co-founder, Flipkart said:
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.”
Jabong, the Delhi-based fashion enterprise was founded by Praveen Sinha and Arun Chandra Mohan and funded by Rocket Internet. Recently, the company hired Sanjeev Mohanty as CEO in November 2015. Other contenders of the deal included Jasper Infotech’s Snapdeal, and titans Aditya Birla Group, Future Group and Reliance Industries.
Founded in 2007, Myntra is run by Mukesh Bansal, Vineet Saxena, Ashutosh Lawaria, and Raveen Sastry which was acquired by Flipkart in 2014 for Rs. 2000 crore.