Though Flipkart and Myntra did not announce the acquisition cost, GFG said in a statement from Luxembourg that it had entered into an agreement to sell Jabong to Flipkart group for $70 million in cash.
"The transaction is a decisive step in our strategy to refocus business on core markets and accelerate on our path to profitability," GFG said in its statement.
The transaction is subject to customary closing conditions and is expected to close during the third quarter of this year.
Gurgaon-headquartered Jabong is a major fashion multi-brand e-store with 1,500 global brands, sports labels and Indian ethnic and designer labels.
"Post-acquisition, Myntra and Jabong will have a combined b ase of 15 million monthly active users, offering best of brands to Indian consumers," Myntra said in a statement here.
Bengaluru-based Flipkart acquired Myntra in May 2014 for an estimated $300 million.
"Following a strategic review of our Indian operation, the board concluded that Jabong's position as India's leading fashion e-commerce destination would be best served through a business combination with a local player. Having reviewed multiple options over several months, the board has resolved to sell Jabong to Flipkart group," GFG said in the statement.
Besides apparel, Jabong.com sells footwear, fashion and home accessories, beauty products and fragrances.
"Over the last 12 months, all our operations have improved customer experience and economics. Through the sale of Jabong, we are achieving a milestone in our strategy to refocus and invest in our core markets that show growth and revenue potential and a predictable path to profitability," said GFG Chief Executive Romain Voog on the occasion.
Both the e-commerce platforms will jointly hard-sell iconic global brands, including Dorothy Perkins, Topshop, Tom Tailor, G Star Raw, Bugatti Shoes, The North Face, Forever 21, Swarovski, Timberland and Lacoste.
"Jabong's acquisition is a continuation of our group's journey to transform commerce in India. We will offer a variety of styles, products and assortment of global and Indian brands," said Flipkart co-founder and Chief Executive Binny Bansal in the statement.
As fashion and lifestyle is a major driver of e-commerce growth in the country, Bansal claimed Myntra's strong performance had reinforced faith in the segment.
"Acquisition of Jabong is a step in our journey to be the country's largest fashion platform, as it has built a strong brand, which is synonymous with fashion, a loyal customer base and global brands," said Myntra's Chief Executive Ananth Narayanan.
With synergies in brand relationships and co nsumer experience, Myntra will work with the talented Jabong team to shape the fashion and lifestyle e-commerce in the country.
As a pioneer in mobile-commerce play, the city-based Myntra has partnership with 2,000 global brands, including Nike, Adidas, Puma, Levi's, Wrangler, Arrow, Jealous 21, Diesel, CAT, Harley Davidson, Ferrari, Timberland, US Polo, FabIndia and Biba to offer a range of latest fashion and lifestyle wear.
The $10-8 billion GFG was founded in 2014 through the merger of six-growth-market oriented businesses spanning fashion and accessories, worldwide.
GFG sells Lamoda brand in Russia, Dafiti in Latin America, Namshi in the Gulf region, The Iconic in Australia and New Zealand and Zalora in South East Asia.
"Jabong team has built an attractive fashion e-commerce firm. With the outcome of Jabong's strategic review, will focus our energy and capital in driving the growth of Lamoda, Dafiti, Namshi, The Iconic and Zalora across 24 countries of operation, said GFG's largest shareholder Lorenzo Grabau in the statement.
Commenting on the deal, global advisory group Gartner's research director Sandy Shen said fashion, especially women's fashion, was a top category on e-commerce platforms in terms of transaction volume and growth.
"The acquisition of fashion platforms (like Jabong) is a move for Flipkart to penetrate into the red-hot category, maintain leadership position in the market and keep Amazon at bay. We expect major players to keep acquiring niche players to expand into product categories, demographics and geographies and add to their offerings," said Shen in a statement.
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