Amazon inches closer to acquiring Rocket Internet backed

E-commerce giant, Inc. has completed its first level of talks to acquire Rocket Internet-backed lifestyle e-tailer in a deal worth $1.1-1.2 billion, in the biggest acquisition in the history of the Indian e-commerce space, two sources privy to the development told VCCircle.

It is not immediately clear how the deal would be structured as Jabong is an inventory-based e-tailer, where foreign investment is not allowed at present. Experts say the deal is bound to attract intense regulatory scrutiny given the heft of Amazon.

"The way the market is placed, fashion is the biggest category. However, it would not be possible for a general merchandiser to crack this industry without targeting inorganic growth," one of the sources privy to the discussion told VCCircle.


Another source cited above said that Amazon would keep Jabong as a separate property post the acquisition. "It (deal) would be very much on the lines of Amazon's acquisition of Zappos in the US," he was quoted in the report as saying.

Besides Rocket Internet, Jabong also counts Swedish investment firm Kinnevik and UK's development financial institution CDC as a shareholder. Kinnevik owns 25% stake in Jabong.

The news of a possible Amazon-Jabong deal, started circulating way back in May, days before Flipkart announced a deal to acquire Myntra. Flipkart-Myntra deal, which was pegged at around $340 million, remains to date the biggest M&A in the e-com sector in the country.

Jabong reported gross merchandise value (GMV) of Rs 509.5 crore from 3.197 million orders in the January-June 2014 period. This marked a three-fold rise over the previous year.

Share this:

About Jessica Priston

Ut tellus dolor, dapibus eget, elementum vel, cursus eleifend, elit. Aenean auctor wisi et urna. Aliquam erat volutpat. Duis ac turpis. Integer rutrum ante eu lacus. Vestibulum libero nisl, porta vel, scelerisque eget, malesuada at, neque. Vivamus eget nibh. Etiam cursus leo vel metus. Nulla facilisi. Aenean nec eros.

  • Website
  • Google+
  • Rss
  • Pinterest
  • Instagram
  • LinkedIn
  • Vimeo
  • Youtube
  • Flickr
  • Email

Related News

  • Cashback site Cashkaro now offers restaurant discounts

    India’s e-commerce market looks large and lucrative enough from the outside, but insiders know it is very challenging. In fact, the number of e-commerce sites and businesses is growing so fast here today that the competition is cut-throat. This

  • What is Viscose Material? Advantage and disadvantage of viscose.

    Viscose is a unique form of wood cellulose acetate used in the nnmanufacture of a number of different products. This includes items for nnthe medical industry, though it is perhaps most common as a major nningredient in the production of the fabric r

  • Honda launches new CBR 250R bike
    Honda launches new CBR 250R bike
    July 01, 2014 5:50 am

    New Delhi: Honda Motorcycle & Scooter India (HMSI) launched a new edition of its global sports performance bike CBR 250R priced between Rs 1.56 lakh and Rs 1.86 lakh (ex-showroom Delhi). The 2013 edition CBR 250R is available for sale across a

  • Zara has opened store at Ambience mall, Gurgaon

    Zara, has opened its new store at Ambience mall, Gurgaon. Spread over 28,000 sq.ft. across two floors the store has taken the space earlier occupied by Debenhams. With this Zara now has twelve stores in India. It is present in 86 countries with