Business

Myntra acuires Jabong in an auction for $70 Million

myntra

Myntra, the leading online trading site bought Jobong in an auction by beating Snapdeal and other leading sites. Today, Jobong was sold to Flipkart owned Myntra for $70 Million during an auction which was blocked since more than a year.

In 2014, both Myntra and Jobong were rivals in e-commerce marketplace and 2016, Flipkart through its retail unit Myntra owned Jobong for $70 Million. And no doubt this achievement has speeded up Flipkart for preserving the number one position in Indian e-commerce arena.

As reported by Global Fashion Group (GFG), in the queue for purchasing Jobong, several leading marketers including Amazon and Snapdeal were also presented. However, by beating all other, Flipkart-owned Myntra pay the highest amount of money for the acquisition and eventually owned Jobong.

Since more than one year, the owner of Jobong, Global Fashion Group (GFG) has been planning to sell the fashion site and looking for the right buyer. Numerous e-commerce firms including Future Group, Aditya Birla Group,  Snapdeal, and Amazon has participated in the discussion while Myntra agrees to pay the whopping amount of $70 Million for buying Jobong.

After this acquisition, the Co-founder of Flipkart, Mr. Binny Bansal said that, as the growth of e-commerce business in fashion sector is booming with each passing day, the company always looks forward to strengthening its brand in this section, and the auction of Jobong was an excellent opportunity to add more value to the sale rate of Flipkart. He also added that he and his staffs believe in the strong fashion presence of Myntra in the present global market, and the addition of Jobong will enhance the productivity more.

In last financial year, the annual sale profit of Jobong was Rs. 869 crores and the achievement of this highly running site by Myntra will surely boost up Flipkart for reviving the sale, reputation, and profit growth.

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