E-commerce giant Flipkart has acquired Jabong through it unit Myntra from Global Fashion Group for an undisclosed amount. However, according to Reuters news agency the deal has been fixed at $70 million. The deal has come at time when rival Amazon is pumping billions of dollars to acquire a footing and becoming leader in India’s fledgling e-commerce space.
Flipkart bagged the deal by beating Snapdeal and will pay in cash for the acquisition, according to a statement by GFG, which owns Jabong. For Flipkart-Myntra, the acquisition of Jabong will boost sales at a time when Flipkart is struggling to revive growth, and struggling to protect its leadership in a market where Amazon has made rapid strides.