India’s biggest e-commerce firm Flipkart just bought online fashion retailer Jabong from Global Fashion Group for $70 million. On Tuesday Global Fashion Group (GFG) disclosed that the transaction has been agreed upon at $70 million in cash.
This is much less than the asking price, as per earlier reports the asking price was somewhere between $100-150 million. The two sites will have a combined base of 15 million monthly active users.
“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 to leading daily.
The Myntra and Jabong sites will exclusively offer international brands such as Top Shop, Dorothy Perkins, Forever 21, and Swarovski in India, Myntra said.
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 150,000 styles from over a thousand sellers.
Will the same policy be continued by the new parent, Flipkart?