Flipkart's Myntra buys Jabong for $70 million

Fashion portal Myntra, owned by India's alrgest online retailer Flipkart has bought beleagured online merchendise retailer Jabong.

Flipkart's Myntra has bought beleagured online fashion retailer jabong for $70 million (Rs 430 crore).

The company, in a statement, said, "Myntra, a Flipkart Group company, today announced the acquisition of Jabong from Global Fashion Group to create India’s biggest fashion shopping destination. The acquisition of Jabong further strengthens Flipkart Group’s position as the undisputed leader in Fashion and Lifestyle segment in India."

It further said, "Myntra and Jabong are all set to define the next generation of online shopping with a combined base of 15 million monthly active users and offering the best of brands to Indian consumers."

Binny Bansal, CEO and Co-Founder, Flipkart said, “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. 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”

Welcome @JabongIndia to the @Flipkart family. We'll create history together.

— Sachin Bansal (@_sachinbansal) July 26, 2016

Earlier there were speculations that Kishor Biyani-led Future Group is in talks to buy Jabong. Snapdeal was also said to be in the fray.

GSG is a consortium of six online retailers.

In India, it is Jabong, Dafiti in Brazil, Colombia, Argentina and Chile, Namshi in the Middle East, LaModa in Russia and Central Asia, Zalora, and The Iconia in South East Asia and Australia.

According to Ananth Narayanan, CEO, Myntra, “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.”