New Delhi: Indian giant e-commerce company Flipkart Ltd has acquired online fashion portal Jabong through Myntra to solidify and expand its reach in the Indian market.
Global Fashion Group, a company which owns Jabong, before officially selling Jabong to Flipkart, held discussions with several firms, including Future Group, Aditya Birla Group, Amazon and Snapdeal. GFG has been looking for a buyer for the online portal for over a year.
“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," founder of Flipkart Binny Bansal said.
Although the deal was official, the financial details of this massive collusion haven’t been revealed yet.
Since the advent of Amazon into India, Flipkart has been merging with other dominant portals to collectively beat its rival competition.
Corporate giant Morgan Stanley, on May 2016, had registered Flipkart's valuation at $9.39 billion, a $6 billion drop from May 2015.