Myntra acquires Jabong…
Yes, its true. Jabong, an Indian fashion and lifestyle E-commerce portal founded by Praveen Sinha, Lakshmi Potluriand Arun Chandra Mohan in 2012, offers more than 1,500 international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from more than 1,000 sellers, who rode a rocket but landed in the arms of Myntra – a unit of Flipkart Ltd. in a cut-price deal that values the online fashion store at $70 million, moving to preserve its position as India’s No.1 E-commerce marketplace in the face of an onslaught by Amazon India.
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According to a statement issued by Global Fashion Group (GFG), which owns Jabong, Flipkart will pay cash for the acquisition.
“Fashion and lifestyle is 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.”
–Binny Bansal, co-founder of Flipkart
He also added, “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.”
Jabong has a 4 million strong customer base. It is strong in the women’s segment and in the Delhi NCR region.The purpose of this acquisition is growth. We have done the deal because we think it is a good one.
–Ananth Narayanan, CEO, Myntra
Narayanan also said that, “The two companies have signed the deal and other formalities will be completed shortly. Myntra’s team has already started working along with Jabong’s management and the two companies will continue to operate as separate entities going forward.”
Well according to a source, Myntra’s CEO says, ” I will run Jabong and Myntra as Separate Entities…”