Amazon looking to acquire Jabong: report

Amazon.com is looking to acquire fashion portal Jabong in a move that would bolster its presence in key growth market as the US e-tailer vies for supremacy in Indian market with Flipkart, The Economic Times reported quoting sources close to discussions between the two companies.

Jabong is worth around Rs3,000 crore (388 million euros, or $500million), according to a regulatory filing by Germany's Rocket Internet, which incubated the fashion portal.

Jabong, meanwhile, has other suitors and, according to the report, a deal with Amazon cannot be imminent.

Jabong, which has Germany's Rocket Internet and Swedish investment firm Kinnevik among its investors, is holding out for deals above Rs4,000 crore (around $700 million), according to the report.

"After Myntra got acquired by Flipkart, Jabong is the ideal candidate," said a person who is working closely with Amazon on the negotiation.

It may be remembered that Amazon has propose to invest $2 billion in India and most of the money could go for acquisitions, the report quoted sources as saying.

Amazon is battling Flipkart for dominance in one of the world's fastest-growing markets where online retail is expected to reach Rs50,000 crore by 2016, according to consultancy firm Crisil.

Jabong is the second largest fashion portal in India after Myntra, which was acquired by Flipkart in May for an estimated value of $370 million.

According to industry estimates, the Flipkart-Myntra combine has a market share of over 50 per cent in fashion retail and Jabong 25 per cent.