Flipkart Big Daddy Day- Myntra acquires Jabong!

After a year of talks with Amazon, SnapDeal, Aditya Birla Group, Future Group and many e-commerce giants, finally GFG has decided to go for Flipkart owned Myntra- for a merger of its Jabong.

Though financial details of the acquisition have not been declared, here is the expression of Binny Bansal on cracking the acquisition deal, “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.”

Jabong and Myntra were the major choice of the population with both giving a strong competition to each other until 2014; however afterwards Jabong gradually has lost the position in e-commerce based fashion portal. The sole reason lies in the further funding problems (though last December they got $100 millions) and the Amazon’s entry into the sector.

On a contrast, if GFG has done this act a year before in 2015, then, it could have fetched a more currency. In 2015, Jabong was valued at $3.1 billion and in 2016, its valuation came out to be mere $1.13 billion. Nevertheless, Jabong’s founder feels that the acquisition is not going to reinforce the market presence of Myntra. The rational that Praveen provides is that Jabong had an un-diverted focus on Fashion; as Flipkart is more into other e-commerce segments also, so just by acquiring Jabong is not going to help them but increase their problems as still Flipkart is not able to bring smiles to customers’ faces during their own great Flipkart Big Billion Day.

Whatever may be the scenarios and opinions one thing is for sure that Flipkart had planned for a big thing that resulted from Myntra Merger in 2014 with Flipkart and now Jabong merger with Myntra.

It’s a Flipkart Big Daddy day!