Myntra acquires Jabong for Rs 471 cr in cash deal

Flipkart-owned Myntra on Tuesday made yet another consolidation move by acquiring Jabong from Global Fashion Group for $70 million (approximately Rs 471 crore) in an all-cash deal.

The combined entity, with 15 million monthly active users, will form India’s biggest online fashion shopping destination.

In a Twitter response, Flipkart executive chairman Sachin Bansal stated: “Welcome @JabongIndia to the @Flipkart family. We’ll create history together.”

Flipkart-Myntra acquisition of Jabong comes at a time when Amazon is making inroads into the Indian market.

Gurgaon-based Jabong was founded in 2012. It offers more than 1,500 international high-street brands, Indian ethnic and designer labels, sports labels, and over 150,000 styles from more than 1,000 sellers.

Flipkart CEO and co-founder Binny Bansal said fashion and lifestyle are the biggest drivers of e-commerce growth in India. “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,” said Bansal.

Bengaluru-based Myntra, acquired by Flipkart in 2014 for Rs 2,000 crore, was founded by Mukesh Bansal, Vineet Saxena and Ashutosh Lawania in 2007. Sources familiar with the development said both entities will operate separately.

Rocket Internet, a German investment company which holds the majority stake in Jabong, announced its merger in September 2014 with four other online fashion retailers in Latin America, Russia, the Middle East, South East Asia and Australia to create GFG.