Flipkart’s Myntra says it has bought rival shopping site Jabong for 70 million dollar in cash.The deal is said to be concluded in the third quarter of 2017.
Jabong has been reported to fallen on hard times in the past years due to management shake ups and poor sales.
India’s e-commerce industry has emerged tremendously in terms of customer growth in recent years but still the companies continue to make losses.
Last month Amazon announced it would set up huge investment of 3 billion dollar in the country, increasing competition in the sector.
Simon Atkinson, India Business Editor said-“If you don’t live in India, you probably haven’t heard of Jabong or indeed Myntra – but you might know Flipkart – the country’s biggest online retailer….China’s Alibaba is sniffing around looking for an opportunity. And despite the denials – one rumor that won’t go away is Amazon making a decisive strike to become top-dog by buying Flipkart.”