Flipkart has acquired Jabong for $70 million to strengthen its position in the growing online fashion market in India.

Target Information

Flipkart, India's leading e-commerce firm, has acquired Jabong, a rival online fashion retailer, for approximately $70 million. This deal comes after Flipkart previously acquired Myntra, another fashion portal, for $300 million in 2014. The acquisition of Jabong signifies Flipkart's strategic move to consolidate its presence in the high-margin fashion segment, which is projected to be worth around Rs 3 lakh crore. Jabong, which has been facing challenges in recent years, presents an opportunity for Flipkart to enhance its product offerings and market share in the competitive online fashion landscape.

Industry Overview

The online fashion industry in India has witnessed rapid growth, characterized by increasing consumer demand driven by rising internet penetration and smartphone usage. The sector is projected to expand significantly, with e-commerce in India forecasted to quadruple in value from $30 billion in 2016 to $120 billion by 2020. This surge positions fashion as the second-largest segment in Indian e-commerce, following electronics.

Major players, including Flipkart, Amazon, and various international brands, are engaging in fierce competition to capture market share in this lucrative sector. Flipkart's r