Flipkart has acquired Jabong for $70mn (all cash deal)
Notes from GFG PR: Global Fashion Group (GFG) has entered into a definitive agreement to sell Jabong, its Indian business, to Flipkart Group for US$70 million in cash. The transaction is a decisive step in GFG’s strategy to refocus its business on core markets and further accelerate its path to profitability.
Following a strategic review of its Indian operation, the GFG Board concluded that Jabong’s position as India’s leading fashion e-commerce destination would be best served through a business combination with a local player. Having reviewed multiple options over a period of several months, the GFG Board has resolved to sell Jabong to Flipkart Group.
With Net Revenues of €126m and Adjusted EBITDA of €(56)m for the 12 months ended March 31, 2016, Jabong represented 13% of GFG’s Net Revenue and ca. 22% of Adjusted EBITDA loss.