The first report claiming that Amazon India was looking at acquiring Jabong surfaced online last month. Now, the folks at VCCircle have some additional information saying that the e-commerce company is in advanced talks to acquire the fashion portal for somewhere around $1.2 billion. Also Read - Huawei Band 6 launched to take on Mi Band 5, brings SpO2 monitor at budgetAlso Read - PS5 restock July 12, 2021: Price, sale details, how to pre-order PlayStation 5, PS5 Digital Edition
Jabong is backed by Rocket Internet, and also includes UK’s development financial institution CDC and Swedish investment firm Kinnevik, which owns 25 percent stake in the fashion portal. According to the publication, the first level of talks between the companies took place last week. It also notes that after acquiring the portal, Amazon India might Jabong as a separate entity. Also Read - Amazon School from Home store live in India: What's new
Amazon India s move to acquire Jabong is seen as a counter to Flipkart acquiring Myntra in May for $300 million. India’s online fashion market, worth more than $550 million in 2013, is projected to scale up to $3 billion in three years. Post the acquisition, Flipkart-owned Myntra controls 50 percent of India s online fashion market, while Jabong follows behind with a 25 percent share. The rest of the market is controlled by players like Fashionara, Limeroad.com and Zovi among others.
Jabong, founded in 2012, has seen a rapid growth recently reporting a gross merchandise value (GMV) of Rs 509 crore from three million orders between January and June. This, according to the publication, is a three-fold rise over the previous year. It has also been launching global brands in India like Dorothy Perkins, River Island and Miss Selfridge, and plans on launching other brands as well.