Flipkart’s Myntra acquired Jabong for $70 Million
Key points to look out in Flipkart’s acquisition of Jabong
- Jabong reported an operating loss of 426 crore in FY15, slightly lower than in FY14.
- Jabong struggled to compete with online fashion retailers to increase market share in India.
- Jabong acquisition will strengthen Flipkart’s position in India’s Fashion and Lifestyle platform.
- Flipkart can bring global brands like Forever 21, Swarovski, Topshop and The North Face in the Indian market.
- Flipkart can compete with Amazon fashion strategies of growth including same day delivery, doorstep fitting and sponsoring events.
The deal is expected to be closed by the Q3 of this financial year.