Business, Ecommerce, Investments

Amazon-Jabong’s Buyout Deal Reportedly Off the Table

Image Source: TheNextWeb

Image Source: TheNextWeb

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 (India), Lamoda (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.

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