Though you can continue purchasing from Jabong but CRB Tech Reviews came across some latest changes in their ownership.
Yesss! Jabong has been taken over by Flipkart owned Myntra for $70 million in cash. The latest amalgamate move in the country’s e-commerce sector as competition intensifies.
The acquisition of Jabong now strengthens Flipkart Group’s position as the undisputed leader in Fashion and Lifestyle segment in India. Jabong has been among India’s major fashion multi-brand e-store with more than 1,500 on-trend Indian ethnic, international high-street brands,sports labels and designer labels and ranging over 1,50,000 styles from over a thousand sellers.
Flipkart owned Myntra, India’s largest on-line fashion retailer which is buying Jabong, said on Tuesday the two sites will have a combined base of 15 million active users per month. Global Fashion Group is backed by Germany’s Rocket Internet and Sweden’s Kinnevik.
The domestic e-commerce players in India are facing greater competition from both domestic rivals and international ones like Amazon.com Inc, at a time when industry valuations have started to cool.
Rocket Internet flagged earlier this year that doing business was tough in India, requiring more investment by Global Fashion Groups.
The deal gives Myntra, which itself was bought by Flipkart for about $300 million last year, in a stronger position to take on Flipkart’s biggest domestic rival Snapdeal and Amazon, which has pledged to invest over $5 billion in India to boost market share in the country.
Amazon’s huge competition have already prompted some small local players to amalgamate. Privately held Indian conglomerate Future Group, which possess a range of fashion and retail assets, bought online furniture retailer FabFurnish.com in early 2016.
The e-commerce sector comprising of fashion retail in India has especially been attracting investment from both big players such as Flipkart, Snapdeal and Amazon, and newer entrants like Reliance Industries – India’s largest company, which laid out plans to roll out an e-commerce website in April.
India’s e-commerce market is visioned to have a higher perspective though, with annual sales of $36.7 billion expected by 2020, as per reports of consultants KPMG, in the November.
Myntra tools that both Myntra and Jabong sites will exclusively provide international brands such as Top Shop, Forever 21, Dorothy Perkins and Swarovski in India.
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