Two years after Flipkart acquired Myntra, the Bengaluru-based e-commerce giant snapped up online fashion retailer Jabong to emerge as India’s biggest fashion retailer. Jabong’s acquisition has been done through Myntra, the company said in a press release.
Flipkart had acquired online fashion retailer Myntra at an estimated Rs 2,000 crore in May 2014. According to the press release, Myntra and Jabong will have a combined base of 15 million monthly active users.
Launched in 2012, Jabong had been looking for a buyer for some time now. It gave tough competition to Myntra for some time, before scaling down discounts to focus on bottom line. Jabong cut down its losses to Rs 46.7 crore in 2015 from Rs 159.5 crore in 2014.
Jabong’s story reflects the ongoing consolidation in the domestic e-commerce industry, where the focus has shifted from raking up higher gross merchandise value (GMV) to profitability.
According to media reports, Snapdeal and Aditya Birla Group were among some of the suitors for Jabong, owned by Global Fashion Group (GFG).
