Myntra acquires Jabong; Sachin Bansal keen on 'creating history'

Moneycontrol BureauThe race to acquire Jabong has come to an end finally with Flipkart’s arm Myntra acquiring the fashion e-retailer for USD 70 million on Tuesday. Competitors like Alibaba, Kishore Biyani’s Future Group and Snapdeal were main contenders in the race. Sachin Bansal, Flipkart's co-founder, confirmed the news by welcoming Jabong India to the Flipkart family in a tweet. The tweet read: Welcome@JabongIndia to the @Flipkart family. We'll create history together.According to Mint, co-owner of Jabong - the Swedish firm AB Kinnevik - was seeking a valuation of USD 100-150 million for Jabong.The talks of sale were fueled by reports that Jabong's current owners Kinnevik and Rocket Internet were reluctant to pump in more money into Jabong. According to some media reports, Kinnevik officials were in India in early July to meet with prospective buyers to discuss the terms of deal. Jabong.com, owned by Global Fashion Group (GFG), has been on shaky grounds since the last one year on the back of dwindling sales and changes in its top management. But the company had been taking steps to reduce its cash burn. It had done away with discounts in order to pare the losses to Rs 46.7 crore in 2015 from Rs 159.5 crore a year before that. This is not the first time that Jabong has looked for a buyer. Back in 2015, the e-tailer almost got sold to Amazon, which fell through due to a valuation mismatch.