Flipkart's unit Myntra acquires Jabong at $70mn.

Flipkart's Myntra buys Jabong.com

Flipkart's unit Myntra acquires online shopping company Jabong from Global fashion group. Myntra, which itself was acquired by Flipkart in 2014 will have access to a combined base of 15 million monthly active users. Myntra buys Jabong in a cut-price deal at $70 million, moving to preserve its leading position in e-commerce marketplace.
Jabong is among India's major fashion multi-brand e-store with more than 1,500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 1,50,000 styles from over a thousand sellers," Myntra said in a statement.

“Fashion and lifestyle is one of the biggest drivers of ecommerce 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,” said 

Binny Bansal, CEO of Flipkart, in a statement according to a e-news paper.

"The acquisition of Jabong further strengthens Flipkart Group's position as the undisputed leader in Fashion and Lifestyle segment in India. Jabong is among India's major fashion multi-brand e-store with more than 1,500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 1,50,000 styles from over a thousand sellers," Myntra said in a statement according to a blog post.

"We look forward to working with the talented Jabong team to shape the future of fashion and lifestyle ecommerce in India," posted on Twitter by Sachin Bansal, executive chairman of Flipkart..

By acquiring this online fashion hub Jabong, flipkart straighten its backbone in the market of e-commerce and hardens the tournament for its competitors like Snapdeal and Amazon.

Bhuvan Arora