Saturday, March 25, 2017
Amazon planning To Buy Fashion Lifestyle Portal Jabong
Amazon planning To Buy Fashion Lifestyle Portal Jabong
In October, distributers like Firstpost, ET, Trak and so on reported that the two firms may be shaking hands, however in a late development it has surfaced that the first phase of talks for Amazon to secure Jabong have been finished. Also Amazon would obtain the organization in a deal sum worth USD 1-1.2 Billion.
Jabong is a piece of Rocket Internets Big Foot Retail (Family of Jabong, Dafiti, Lamoda, Namshi and Zalora), henceforth the billion dollar deal may include these other global retailers as well.
A source with the knowledge relating to this matter told Vccircle that post acquisition, Amazon would keep Jabong as an issue substance. Jabong is an inventory based e-tailer, where FDI in not permitted, and the structure of the deal hasnt been uncovered
Amid January-June 2014 period, Jabong reported Gross Merchandise Value (GMV) of INR 509.5 crore from 3.197 million orders. The organization has two other significant shareholders other than Rocket Internet i.e. Swedish speculation firm Kinnevik and UKs CDC.
Big Foot Retail with Rocket-Internet supported locales, for example, Jabong, Dafiti, Lamoda, Namshi and Zalora cases to have worth around USD 2.5 billion as of September 30, 2014.
In the event that the deal experiences, then Amazon would have the capacity to rival Flipkart neck to neck. Myntra and Jabong both are favored fashion destinations, in spite of Amazon & Flipkart having various categories including apparel. Flipkarts marriage with Myntra, provided for it an edge over amazon, However now if Amazon gets Jabong, it would have the same ammo to stay in the competition.
However now if Amazon gets Jabong, it would have the same ammo to stay in the competition.
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