Amazon joins Jabong queue

US-based Amazon is the latest in a list of potential bidders for India’s Jabong online fashion portal.

Jabong, co-owned by Rocket Internet which has acted as an incubator of the concept, values the site at about US$500 million in official documentation, but is thought to be seeking a premium of as much as 40 per cent over that. The site is India’s second largest fashion portal behind Myntra.

Neither Amazon or Jabong have commented on reports that discussions have commenced and neither Jabong or Rocket have confirmed the identity of other prospective bidders as negotiations continue.

Amazon is said to be considering investments in fashion portals globally as it seeks to build a share of more exclusive lines and expand its business base further outside its US home market.

The US giant has previously announced a $2 billion fund for Indian acquisitions, encouraged by seeing its annual sales in the nation exceed $1 billion. It missed out on Myntra which was snapped up by Flipkart, with those two companies now accounting for a combined 50 per cent of the online fashion market to Jabong’s 25 per cent. Amazon believes its experience and scale could boost that share at Flipkart-Myntra’s expense.

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