India’s biggest e-commerce Company Flipkart is on a way to create history. Flipkart’s Fashion portal Myntra has acquired Online retail portal Jabong. Flipkart has not announced the Flipkart Jabong deal amount.
Jabong is India’s one of big fashion e-store with more than 1500 brands.
Flipkart co-owner Binny bansal said, “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. 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.”
Flipkart Executive Chairman Sachin Bansal tweeted on today morning, “Welcome Jabong India to the Flipkart family. We’ll create history together.”
Jabong was owned by Global Fashion group. For last few months, Jabong’s business was on down grade. Jabong was also in touch with other e-commerce giants Snapdeal, Amazon India and Future Group but finally deal is cracked by Flipkart’s Myntra.
Jabong is the only loss-making outfit in Global Fashion Group’s portfolio of ten companies in the January-June 2015 period. Jabong also registered slowest revenue growth of 26.5 per cent y-o-y in the six months to June, 2015 among the ten companies.
Jabong reported an operating loss of Rs 426 crore in FY15. The revenue growth in FY15 inched up by just 7 per cent to Rs 866 crore from Rs 811 crore in the previous year.
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