Online fashion retailer Myntra will integrate its sister firm Jabong with itself and the integrated firm will continue to be led by Myntra CEO Ananth Narayanan.
Online fashion retailer Myntra will integrate its sister firm Jabong with itself and the integrated firm will continue to be led by Myntra CEO Ananth Narayanan. The the two will, however, continue to operate as separate brands, a statement from Myntra said on Friday.
The statement also denied speculation that Narayanan has resigned from the firm post the stepping down of Flipkart’s group CEO Binny Bansal earlier this week, following a probe into an alleged “serious personal misconduct”. The speculation arose as Narayanan reported to Bansal and after the reshuffle will have to report to Flipkart CEO Kalyan Krishnamurthy.
Flipkart had acquired Myntra in 2014 and Myntra had acquired Jabong in 2016. The company said since Myntra’s purchase of Jabong, the two brands have been steadily integrating key business functions and streamlining processes.
“Since Myntra’s purchase of Jabong in mid-2016, the two brands have been steadily integrating key business functions and streamlining processes,” a Myntra spokesperson said.
“This has resulted in revenue growth and a significant improvement in the customer experience. As the next step in this process, Myntra and Jabong will now fully integrate all the remaining functions including technology, marketing, category, revenue, finance and creative teams,” the spokesperson said.
The spokesperson added: “The closer integration of Myntra and Jabong is a necessary step in our continuing development. To remain the leader in fashion e-commerce in India, we have to find ways to operate more effectively and innovate more quickly. By better aligning our resources with our long-term plans, we can put the best structure in place to serve our sellers and brand partners and ultimately benefit our customers”.
The company said Myntra’s independence as a business will be preserved and the team will continue to operate independently.
On his part, speaking to Reuters, Myntra-Jabong CEO Narayanan denied media reports that he would quit following the stepping down of Bansal. “I’m very excited about Myntra,” Narayanan told Reuters. “I certainly intend to continue.” He, however, did say that there would be some job cuts in Jabong. He said his relationship with Krishnamurthy was “very good”. “I think the structural change will only help Myntra overall,” Narayanan told the news agency.
However, he confirmed that Myntra’s chief financial officer Dipanjan Basu has quit and added Basu is leaving because he has found “a great opportunity” elsewhere.
On job cuts, while Narayanan declined to give any absolute numbers, he said less than 10% of Myntra-Jabong’s workforce will lose jobs.
Industry sources estimate that some 200 jobs will be cut.