New Delhi: American online retail giant Amazon is planning to acquire fashion portal Jabong.com. According to a report by VCCircle, Amazon.com is in discussion to buy Jabong.com, in a deal worth about USD 1.2 billion.
Amazon eying to take over JabongIt is worth mentioning that India's online fashion market is controlled by the merged Flipkart and Myntra with a combined market share of 50 percent, while Jabong controls 25 percent of the market and others, such as Fashionara, Limeroad.com and Zovi, the rest.
Jabong had reported a merchandise value of Rs 509 crore from whooping three million orders in the January-June period of current year.
After Flipkart acquired rival Myntra in a Rs 1,800-crore stock-and-cash deal in the month of May, there was a buzz that Amazon could buy Jabong to counter Flipkart's move.
According to the VCCircle report, Amazon could keep Jabong as a separate property after the acquisition.
It may be mentioned here that India's online fashion market, worth more than USD550 million in 2013, is projected to scale up to USD 3 billion in three years. According to a report, the USD 2.3-billion Indian e-retail market could swell to USD 32 billion by 2020 and account for 3 percent of the country's overall retail sector.
Founded by Arun Chandra Mohan, Praveen Sinha, and Lakshmi Potluri in 2012, Jabong was later joined by others like Manu Jain and Mukul Bafana. The company has about 1,000 brands and generates annual sales of USD 300 million (gross merchandise value).
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