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Global Fashion Brand Plans To Sell Jabong To Paytm

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Jabong logo About

Fashion and apparels giants Jabong.com is company that aims to provide good quality branded products. Jabong.com caters to the fashion needs of men, women and kids across footwear, apparel, jewellery and accessories.

Jabong World is one stop destination to buy Indian Ethnic Wear across the globe. They are the international arm of Jabong.com, which is a leading fashion and lifestyle E-Commerce portal in India. In a very short span of time, they have become pioneers in selling an exclusive array of classic Indian Ethnic wear that primarily include sarees, lehengas, sherwanis, kurtis, kurta, jewelry, bags etc. among vast catalogue of women, men and kids apparel.  They have also included western and indo-western apparels in our catalogue to provide extensive shopping options to our customers.

To cater international customer base they keep on introducing seasonal offers and bulk discounts, so that we can splurge on expensive designer ethnic outfits without shelling much from our pocket. They have collaborated with top fashion brands and logistics providers to offer hassle free services to their customers. Also they ensure to deliver only latest available fashion at our doorstep at highly affordable prices.

Being a reputed International Indian Wear Online store, they add only superior quality products on their website to ensure complete customer satisfaction and world class online buying experience

At Jabong they strive to achieve the highest level of “Customer Satisfaction” possible. Cutting edge E-commerce platform, highly experienced buying team, agile warehouse systems and state of the art customer care centre provides customer with: Broader selection of products, Superior buying experience, On-time delivery of products, and Quick resolution of any concerns.

With Jabong world people residing in India can also send gifts abroad to their loved ones and make them feel special with their kind gifting gesture.

Global Fashion Group which owns online fashion retailer Jabong is in talks with Paytm to sell the online fashion retailer.Paytm300x3001

Breaking news comes just few days after news of Jabong’s CEO and co-founder, Arun Chandra Mohan and Managing Director and co-founder moving out of the company had sufficed in the media.

According to Mint, AB Kinnevik the largest shareholder of Global Fashion Group, is taking care of the sale process and is reaching out to other potential firms to sell out Jabong. Akhil Chainwala, investment manager at AB Kinnevik is currently in India to meet potential buyers for Jabong. He is also expected to meet top executives at the Aditya Birla Group.

AB Kinnevik is also negotiating on behalf of Rocket Internet, which owns more than 21% of GFG. It wants to sell its stake in the money-losing Indian fashion store ahead of GFG’s proposed stock market listing. AB Kinnevik owns more than 25% of GFG. Jabong is currently valued at somewhere around $500 Mn and $800 Mn, according to people close to the development.

Even last year they were reports and rumors that Amazon was in talks to acquire Jabong. However E-Commerce giant Amazon had denied any such thing. Myntra’s sudden rise and growing competition in Indian online fashion industry made it more difficult for Jabong to cope up with. But Amazon were reportedly in line to buy Jabong last year, but they pulled out in January when Jabong demanded for $1.2 billion in valuation.

Jabong was merged with Global Fashion Group (GFG), formed out of five Kinnevik and Rocket Internet-backed online fashion startups active across dozens of emerging markets earlier this year. These include Dafiti (Latin America), Jabong (India), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora (South East Asia and Australia). The merged entity had also risen $35 Mn funding round led by Tengelmann Ventures and Verlinvest.

Currently Jabong offers over 190,000 products from more than 1,800 brands on portal. The company closely competes with Myntra.com. Jabong almost matched sales with larger rival Myntra until early 2014. After that Jabong market share slowly declined in 14 months or so. Jabong was launched in 2012, and is headquartered in Gurgaon.

According to a source of ComScore report of September 2012, Jabong had the second highest amount of traffic to it’s website among top Indian e-commerce websites within a few months of its launch. This was kind of a positive beginning to Jabong.com. Another milestone was according to The Brand Trust Report (BTR) India Study – 2013 by Trust Research Advisory Board – Jabong ranked among the top 25 trusted online brands in India. Jabong.com is among the top three e-commerce websites in India when it comes to customer satisfaction.

Conclusion

Jabong.com has reportedly got sales of Rs.811.4 crores and a massive loss of Rs.454 crores for the year ended 31 Dec 2015. Jabong even shut down offices in London and moved to India to cut losses further. But Myntra.com parent of India’s leading e-commerce giant Flipkart has recorded massive increase of sales and Flipkart spent over hundreds of crores in advertisements and discounts to lure all the customers.

May be Jabong failed internally and couldn’t cope with the increased competition in market, so they want to sell stakes to paytm as soon as possible. If this sale takes place by Global Fashion Group (GFG) then this could be one of the largest deals in Indian online fashion industry right after Flipkart acquired Myntra.com in May 2014.

Image Credits: Jabong and Paytm

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