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Global Fashion Group, which owns online fashion retailer, Jabong, is in talks with Paytm to sell the online fashion retailer. This news comes in just a few days after news of Jabong’s CEO and co-founder, Arun Chandra Mohan and Managing Director and co-founder moving out of the company had sufficed in the media.
According to Mint, AB Kinnevik, the largest shareholder of GFG, is taking care of the sale process and is reaching out to other potential firms to sell out Jabong. Akhil Chainwala, investment manager at AB Kinnevik is currently in India to meet potential buyers for Jabong. He is also expected to meet top executives at the Aditya Birla Group.
“Kinnevik is also negotiating on behalf of Rocket Internet, which owns more than 21% of GFG. It wants to sell its stake in the money-losing Indian fashion store ahead of GFG’s proposed stock market listing, they added. Kinnevik owns more than 25% of GFG,” mentions the report.
Jabong is currently valued at somewhere around $500 Mn and $800 Mn, according to people close to the development.
Last year, there were reports that Amazon was is in talks to acquire Jabong. However, the company had denied any such thing.
Jabong was merged with Global Fashion Group (GFG), formed out of five Kinnevik and Rocket Internet-backed online fashion startups active across dozens of emerging markets earlier this year. These include Dafiti (Latin America), Jabong (India), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora (South East Asia and Australia). The merged entity had also raised $35 Mn funding round led by Tengelmann Ventures and Verlinvest.
Currently it offers over 190,000 products from more than 1,800 brands on portal. The company closely competes with Myntra.
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