Amazon is the world’s largest online e-commerce company and planning to buy the Jabong, Indian retailer e-commerce platform. Amazon showed their interest to acquire the Jabong in a deal of $1.1-1.2 billion. Meeting of the Deal took place recently According to the Source. Deal is not yet structured well as foreign investment is not allowed with inventory-based e-retailer.
Flipkart in the May this year acquired Myntra in about $300 million. so Amazon definitely going to invest with deal by structuring, if Rocket Internet, Kinnevik and others ready to pour in money with Jabong. After the takeover of the Jabong, amazon will continue to maintain the Jabong as second separate entity.
Jabong is the top on the lifestyle e retailer of the country and another competitive is the Myntra owned by Flipkart. Jabong reported GMV of Rs 509.5 crore from 3.197 million orders in the January-June 2014. It shows the rising business mark.
Let’s see how Jabong and Amazon togather can gives the competition to other online E-commerce retailers.