The race to acquire Jabong finally came to an end on Tuesday after Flipkart announced acquiring Jabong, the country's second largest online fashion retailer, for an undisclosed amount.
The acquisition was done through Myntra, the largest online fashion retailer that Flipkart bought two years ago.
Other contenders in line were Alibaba, Kishore Biyani's Future Group and Snapdeal.
According to reports, Global Fashion Group which owns Jabong has been looking for a buyer for more than a year now.
In a statement, 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.”
There is no word on the financial terms yet. However, previous reports have been hinting at a price far less than what Jabong expected. Instead of the asking price of $200 million, reports suggested that the online site could be sold out for as low as $50 million. We are yet to hear about the official figures, though.
Binny Bansal, CEO and Co-Founder, Flipkart, 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”