New Delhi: American online retail giant Amazon is reportedly inching towards acquiring Indian online fashion retailer Jabong.com. The deal, valued at $1.2 billion, is backed by Rocket Internet.
As per a report published in VCCircle, an initial meeting has taken place about this potential deal.
Apart from Rocket Internet, Swedish venture capital firm Kinnevik and British development finance firm CDC also own stakes in Jabong.
If everything goes in the right direction, the deal will imitate Flipkart's acquisition of online fashion retailer Myntra in May, a deal in stock and cash which was worth Rs 1800 crore.
The report also says that Amazon would keep Jabong as a separate property post the acquisition, which would be on the lines of Amazon's acquisition of Zappos in the US.
At the moment, Flipkart and Myntra with a combined market share of 50 per cent controls the market while Jabong controls 25 per cent of the market and others, such as Fashionara, Limeroad.com and Zovi, the rest.
Jabong was founded in 2012 by three entrepreneurs- Lakshmi Potluri, Praveen Sinha, and Arun Chandra Mohan. More investors joined in over the next year, including Manu Jain and Mukul Bafana. The company has more than 1000 brands on its catalogue.
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