Flipkart Acquires Jabong
As predicted earlier, Online Fashion store Jabong has now been acquired by Flipkart owned Myntra. Although it is not clear about the money that went into this deal, it is speculated that Flipkart spent Rs. 471 crore to have Jabong in its fold. With this addition, Flipkart will now have a lot more products to offer to its users in its catalogue.
This is the Second big acquisition for Flipkart which had earlier acquired Myntra from Mukesh Bansal. It is not clear if the both Myntra and Jabong operate as a different entity or will be merged to one.
With this acquisition, it ends the speculation about the sale that was going on in the last few months. If you recollect, one of the bidders, Aditya Birla Group led Abof was one of the frontrunners who were interested in the deal the another prospective buyer was Snapdeal. But Flipkart seems to have outbid its competitors once again.
Flipkart will now plan to take on Amazon which is already on a war footing to be the number one player in the e-commerce space. Amazon recently had launched the Amazon Prime service to its user to deliver products within one or two days and also giving away extra discount for the Amazon Prime Customers.
With the festival season round the corner, Flipkart has very little or no time to spin the magic to entice more visitors to its store. It is also interesting to watch out how it manages to make use of Jabong’s existing user base.
With this deal in its portfolio, Flipkart seems to have gained an upper hand in the fashion category, let’s wait and see how Amazon reacts to this move.