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Ecommerce

Jabong allegedly in talks to sell stake to Snapdeal

Wednesday 30 September 2015 | 01:08 PM CET

Jabong, an online fashion retailer, is reportedly in talks to sell stake in the company to India\'s second largest online retailer Snapdeal.

While Flipkart's acquisition of Myntra strengthened its presence in online fashion retailing, Snapdeal is yet to find a partner in the segment, ibtimes.co.in reports. In order to boost its online fashion retailing, Snapdeal may like to have a partner and consider Jabong.

Jabong had presumably begun considering stake sale following a rapid rise in losses. Jabong recorded a five-fold increase in losses during the calendar year 2014 due to high discounts on its offerings, although its revenue growth went up by 136%.

Online retailer Amazon India's discussions with Jabong in 2014 to acquire the firm were unsuccessful on the grounds of valuation. Jabong reportedly asked for a valuation of USD 1.2 billion. The Economic Times has reported that Rocket Internet was looking to sell its top ecommerce firms Jabong, Foodpanda, and FabFurnish amid intensifying competition in the Indian online retail sector, the source cites.

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