Flipkart Ltd has acquired Jabong through its unit Myntra in a cut-price deal that values the online fashion store at $70 million, moving to preserve its position as India’s No.1 e-commerce marketplace in the face of an onslaught by Amazon India.

The acquisition will arm Flipkart with much-needed muscle to take on global rival Amazon, which continues to make inroads into consumers’ wallet and mindspace.

• Myntra, which itself was acquired by Flipkart in 2014 in an estimated Rs 2,000 crore deal, will have access to a combined base of 15 million monthly active users.

• Myntra and parent Flipkart together held 60 per cent share of the online fashion and lifestyle market in the country. With the acquisition of Jabong, the trio will together command a whopping 75 per cent. The deal is crucial for Flipkart because the fashion and lifestyle category is set to overtake electronics by 2020, according to a Google and AT Kearney forecast.

•  the deal would allow the trio to lead the online fashion and lifestyle segment, which is set to contribute $40 billion of the $110 billion e-commerce industry by 2020. Jabong will continue to function independently and its CEO will report to Narayanan.

Flipkart:

CEO: Binny Bansal
Founded: September 5, 2007
Headquarters: Bengaluru
Founders: Sachin Bansal, Binny Bansal