American online retailer Amazon is planning to buy fashion portal Jabong, according to media reports. The deal is believed to be worth USD 1.2 billion and is backed by Rocket Internet.
At $1.2 billion, this would mark the biggest acquisition in the history of the Indian e-commerce. The Flipkart-Myntra deal was at around $340 million.
According to a report in VC Circle, 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.
Flipkart dominates India’s online retail sector, which, along with Myntra, controls 50 per cent of the market. Jabong has a market share of approximately 25 per cent. Other online retailers, such as Zovi and Fashionara, occupy the rest of the market share.
India’s online fashion market, worth more than $550 million in 2013, is projected to scale up to $3 billion in three years.