As per the new reports, Jabong, one of the leading online fashion portal, has expedited its sale process. The major reason behind the sale is the Rocket Internet is no longer interested to keep funding the company.
Its been known from some time that Rocket Internet is trying to exit the Indian market. All the business it backed in India are not performing well. It sold FabFurnish to Furture Group for around Rs. 15 crore.
PrintVenue didn’t get any buyers. The company even contacted its rival Vista Print but it was also not interested to acquire Print Venue.
Now, it is being reported that Jabong is in initial talks with Snapdeal, abof.com and Flipkart. Leading the talks is Kinnevik chief executive Lorenzo Grabau.
Kinnevik plans to stay on and find a strategic investor to the company. He is also negotiating with buyers on behalf of Rocket Internet which reportedly owns more than 21 percent stake in Jabong’s parent company, Global Fashion Group (GFG).
Although Rocket Internet is looking at a valuation of $100-150 million, it is likely to go for around $50-70 million. It is said that Snapdeal and abof.com are leading ahead of Flipkart in bidding.
An executive aware of the development, said,
Jabong has held talks with these four companies over the past few weeks. While none of the negotiations has reached an advanced stage, the deal size could be around two times its annual sales and is expected to close within the next six months.
In September 2014, Rocket Internet merged Jabong with four online fashion retailers to create Global Fashion Group. The companies in GFG includes Dafiti, Lamoda, Namshi, Zalora and Jabong.