In a different kind of Season ending Sale, Flipkart bought out Jabong today through its subsidiary Myntra. Divulging the details, Global Fashion Group – the parent of Jabong,  said that it was an all cash deal and the transaction was sealed at $70 Mn (approximately Rs. 471 crore). 

Jabong had been looking for a suitor for quite some time now. Aditya Birla Group, with its recent online fashion foray with Abof.com and Snapdeal were considered as potential buyers. Flipkart pipped them both to make its second big fashion retail purchase after acquiring Myntra in 2014.

Myntra is currently India’s largest online fashion retailer. With the Jabong buyout, it now aims at becoming India’s biggest fashion destination. Jabong has over 1,500 international high-street brands, sports labels, Indian ethnic and designer labels from more than a thousand sellers.

“The acquisition of Jabong is a natural step in our journey to be India’s largest fashion platform. We see significant synergies between the two companies especially on brand relationships and consumer experience,” said Ananth Narayanan, CEO, Myntra.

Ananth also said that they did not currently have any plans of integrating the two businesses. The 4mn monthly users and international brands of Jabong are expected to bring in value for the business.

“Fashion and lifestyle is one of the biggest drivers of e-commerce growth in India. We have always believed in fashion and lifestyle segment and Myntra’s strong performance has reinforced this faith,” Flipkart CEO and co-founder Binny Bansal said.

Flipkart co-founder and Executive Chairman Sachin Bansal tweeted welcoming Jabong to the Flipkart family.

It may be noted that at the end of 2013, Jabong was valued at $508 Mn. Sales of Jabong have doubled since then. The sharp decline in valuation is owing to  combination of leadership issues, market share losses and a funding crunch.

The deal is subjected to customary closing conditions and is expected to close by the end of third quarter of the year.