Jabong’s website is now redirecting users to Myntra while its almost non-functional app says “rush to Myntra to place your orders”.
Flipkart’s fashion marketplace Myntra, which had acquired rival fashion portal Jabong for $70 million back in 2016, seemed to have finally shut it. Jabong’s website is now redirecting users to Myntra while its almost non-functional app says “rush to Myntra to place your orders”. “Since they announced the impairment on Jabong in November last year, the transitioning of users and sellers from Jabong to Myntra has been happening. They had started redirecting traffic since then. It had started in phases and now the entire redirection has happened,” a source aware of this told Financial Express Online. Myntra currently has over 3,000 brands on the platform and over 22 million monthly active users.
The complete shut-down comes around three months after Walmart announced that it had taken a non-cash impairment charge of $290 million for the value of the Jabong trade name in its third quarter. Walmart’s Executive Vice President and Chief Financial Officer Brett Biggs had last year said that the firm had decided to consolidate back-office functions for Myntra and Jabong to drive efficiencies, reported by PTI. “Since there was value ascribed to the Jabong name at the time of the Flipkart acquisition, we are taking a non-cash impairment charge on the trade name,” he said highlighting the difference between adjusted and GAAP earnings per share that showed “$290 million pre-tax non-cash impairment for the value of the Jabong trade name.”
A Flipkart’s spokesperson declined to comment.
Moreover, since 2016, Jabong had been gradually fading out against the rise of Myntra even as it remained its poor cousin with little to no visible differentiation. “This year, after looking at fashion demand trends, customer overlap, and marketing investments, we have decided to focus on a single premium fashion-focused platform — Myntra,” a Flipkart spokesperson had said in a statement last year. Flipkart had acquired Jabong to add strengths to its Myntra platform and take on the onslaught on Amazon in India. Jabong, founded in 2012, had over 1,500 brands, sports labels, Indian ethnic and designer labels and more than 1.5 lakh styles in its kitty from more than a thousand sellers, Myntra had said in a statement announcing the acquisition in 2016.