In one of the biggest mergers in Indian e-commerce industry, Flipkart-owned Myntra has acquired one of its biggest rivals Jabong. With the acquisition of Rocket Internet’s Jabong for $70 million, Flipkart now has almost over 50% of India’s fashion retail market.
The fashion and apparel segment not only enjoys the highest gross margins globally, but is also among the fastest-growing segment among all e-commerce businesses.
Welcoming Jabong to the group, Flipkart CEO Binny Bansal sent a letter to all its employees. Here’s the text of the letter sent by Bansal:
Hi,
I am happy to inform you that our group company, Myntra, today acquired Jabong from Global Fashion Group, thus creating 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.
As you are aware, Jabong is among India’s major fashion multi-brand e-store with more than 1500 on-trend international high-street brands, sports labels, Indian ethnic and designer labels and over 150,000 styles from over a thousand sellers. Myntra and Jabong are all set to define the next generation of online shopping offering the best of brands to Indian consumers. Some of the most iconic global brands that will be exclusive to both the platforms include Dorothy Perkins, Topshop, Tom Tailor, G Raw Star, Bugatti Shoes, The North Face, Forever 21, Swarovski, Timberland and Lacoste.
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 across our 3 platforms even more wider variety of styles, products and a broad assortment of global as well as Indian brands.
Ananth will be leading both Myntra and Jabong platforms. Please join me in welcoming the talented team of Jabong to the Flipkart group.
Source: The Economic Times
Image source: Image 1, Featured image
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