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| Flipkart's Myntra to buy online shopping rival Jabong | Flipkart's Myntra to buy online shopping rival Jabong |
| (about 4 hours later) | |
| Myntra, a subsidiary of Indian online shopping giant Flipkart, says it has bought rival fashion shopping site Jabong for $70m (£53m) in cash | |
| The deal is expected to be completed in the third quarter. | |
| Once a big player in India's online retailing industry, Jabong has fallen on hard times in the past year amid poor sales and management shake-ups. | Once a big player in India's online retailing industry, Jabong has fallen on hard times in the past year amid poor sales and management shake-ups. |
| India's e-commerce industry has a high profile and rapid customer growth but the sector continues to make losses. | India's e-commerce industry has a high profile and rapid customer growth but the sector continues to make losses. |
| The sector is experiencing increasing competition - last month, industry pioneer Amazon announced it would step up investment in the country. | |
| The US firm plans to increase its investment in India by $3bn (£2.1bn), bringing the total amount invested in the country to more than $5bn. | The US firm plans to increase its investment in India by $3bn (£2.1bn), bringing the total amount invested in the country to more than $5bn. |
| Simon Atkinson, India Business Editor, Mumbai | Simon Atkinson, India Business Editor, Mumbai |
| If you don't live in India, you probably haven't heard of Jabong or indeed Myntra - but you might know Flipkart - the country's biggest online retailer. | If you don't live in India, you probably haven't heard of Jabong or indeed Myntra - but you might know Flipkart - the country's biggest online retailer. |
| Buoyed by rapid smartphone take-up and more people happy to buy online, Indian e-commerce is growing by more than 50% a year. Compare that to China's 18% and 11% in Japan. | Buoyed by rapid smartphone take-up and more people happy to buy online, Indian e-commerce is growing by more than 50% a year. Compare that to China's 18% and 11% in Japan. |
| But the massive discounting used to win customers means that nobody is making money. Jobs have been cut. Valuations written down. | But the massive discounting used to win customers means that nobody is making money. Jobs have been cut. Valuations written down. |
| So as these businesses try to make the numbers work, expect more takeovers and not just at the lower end of the food chain. | So as these businesses try to make the numbers work, expect more takeovers and not just at the lower end of the food chain. |
| China's Alibaba is sniffing around looking for an opportunity. And despite the denials - one rumour that won't go away is Amazon making a decisive strike to become top-dog by buying Flipkart. | China's Alibaba is sniffing around looking for an opportunity. And despite the denials - one rumour that won't go away is Amazon making a decisive strike to become top-dog by buying Flipkart. |
| In a statement, Binny Bansal, chief executive and and co-founder of Flipkart said that fashion and lifestyle were among the biggest drivers of e-commerce growth in India. | In a statement, Binny Bansal, chief executive and and co-founder of Flipkart said that fashion and lifestyle were among the biggest drivers of e-commerce growth in India. |
| "We have always believed in the fashion and lifestyle segment and Myntra's strong performance has reinforced this faith. This acquisition is a continuation of the group's journey to transform commerce in India." | "We have always believed in the fashion and lifestyle segment and Myntra's strong performance has reinforced this faith. This acquisition is a continuation of the group's journey to transform commerce in India." |
| Myntra is itself an online fashion retailer and was bought by Flipkart in 2014. | Myntra is itself an online fashion retailer and was bought by Flipkart in 2014. |
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