According to some reports, e-commerce giant Amazon is planning to acquire Jabong. One hand when the report of Alibaba is considering putting money on Snapdeal has been talk of the town, this breaking news is surely heating up the ongoing fierce battle in the Indian e-commerce sector.
Amazon is reportedly begun talks with Jabong’s founder Praveen Sinha and has offered a deal around $1.2 billion. If this deal sees the light, then this would be the biggest merger ever in the Indian e-commerce industry, beating Flipkart-Myntra deal of around $340 million.
VC Circle has reported that Amazon would keep Jabong as a separate entity after the acquisition, just like Zappos.
“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. But others point out that if Flipkart can buy Myntra, Amazon can seal this deal too with some careful structuring, especially if Rocket Internet, Kinnevik and others can pour in money into Jabong,” the report said.
After Jeff Bezos promised $2 billion investment in Amazon India, this news is surely keep its close rivals like Flipkart, eBay and Snapdeal on their toes.
