Myntra buys rival Jabong for Rs 470 cr
New Delhi, July 26
Flipkart-owned Myntra has bought rival Jabong for $70 million (around Rs 470 crore) — nearly half of its last year’s revenue — in a cash deal from Global Fashion Group (GFG) to consolidate position in the booming Indian e-commerce industry.
While Myntra will benefit from Jabong’s stronghold in categories like women’s apparel, the transaction will allow GFG to “refocus its business on core markets”.
The transaction is subject to customary closing conditions and is expected to close during the third quarter. Other firms like Snapdeal, Future Group and Aditya Birla-owned Abof were also in fray to acquire Jabong.
This acquisition is a continuation of the group’s journey to transform commerce in India, Flipkart CEO and co-founder Binny Bansal said.
According to the Internet and Mobile Association of India, e-tailing has grown at 57% year-on-year, moving from Rs 24,046 crore to Rs 37,689 crore between December 2014 and December 2015. This is further estimated to touch Rs 72,639 crore by the end of 2016.
Myntra CEO Ananth Narayanan said there are no plans of integrating the businesses yet.
“Jabong has a lot of strengths. It gets four million monthly users, has many international brands. We will look at growing both the businesses and leverage capabilities,” he said. — PTI
