When yesterday Flipkart's Myntra acquired Jabong for $70 Million. People were like how they were able to crack the deal in just three days of the talk. One of the reason was- they paid the amount in cash.
So, the amount in cash been paid to acquire Jabong was $70 million on the other hand when it did so, now the combined market share in the online fashion market is now 70%, which will now be their greatest advantage over Amazon.
Also, it has now covered both the desktop and mobile handsets of the users. Because, Jabong is very strong in desktop shopping, while Myntra is primarily mobile based-app.
Myntra offered to pay more than Snapdeal and the Future Group, which was $50 million and $35 million respectively.
And so finally Global fashion Group and Kinnevik, the owner of Jabong decided to sell it's Jabong unit to Myntra.
Let's see further this number "70" will be able to proven lucky in terms of the profit building or not. It will be seen soon.
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