In November 2014, there were rumors that Amazon would acquire Rocket Internet backed Jabong, in a deal amount worth $1-1.2 billion. However now according to some sources the deal is off the table. Neither of the two companies have commented on this as of now.
As per a report by VCCircle, the exact reason for the deal being scrapped could not be ascertained.
Jabong is now concentrating on its global expansion by merging with Global Fashion Group (GFG)
, which will be operational in coming 2-3 months. The Group includes – Dafiti
(Latin America), Jabong
(Russia and CIS), Namshi
(Middle East) and Zalora
(South East Asia and Australia) and is a focused fashion eCommerce firm.
While its stand alone valuation is roughly around $450-500 million, it was possibly considered that Amazon would acquire the entire GFG for a billion dollar. If the deal had gone through, it would have been touted as a global version of homegrown Flipkart-Myntra model, giving stiffer competition to other players across boundaries.
Category Business Ecommerce Investments