After shutting down Jabong’s operations, Flipkart now eyes a $10 million IPO which could bring Flipkart a valuation of $40 million. Through this IPO, owner Walmart plans to focus on areas like grocery and fashion besides making investments in technology and infrastructure.
As per report, Jabong’s closure was on the cards ever since Walmart acquired Flipkart in November 2018. After acquisition, Flipkart merged Myntra and Jabong which had no adverse effect on their market share. However, soon after Jabong began to fade out as compatriot Myntra gained in prominence. The brand’s app downloads declined y 13 per cent in December 2019 while those of Myntra rose by 40 per cent.
Founded in 2012, Jabong had over 1,500 brands, sports labels, Indian ethnic and designer labels, and excess of 1.5 lakh styles in its kitty. Shutting its operations is likely to shake the Indian apparel sector, which as per McKinsey’s FashionsScope data will be worth $59.3 billion by 2022.