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Amid sell-out talks with Amazon, Jabong a step closer to merge into Global Fashion Group

By Priyanka Sahay

  • 22 Dec 2014
Amid sell-out talks with Amazon, Jabong a step closer to merge into Global Fashion Group

A string of five Rocket Internet-incubated fashion e-com ventures have moved a step closer to integrate into Global Fashion Group (GFG) with the proposed restructuring getting the required approvals from all fiscal and antitrust authorities, as per a disclosure by Sweden's investment firm Kinnevik.

Kinnevik is one of the key investors in the lifestyle e-com ventures which include India's Jabong.

Apart from Jabong, GFG will comprise Dafiti (Latin America), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia) covering 23 countries.

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GFG will operate across five continents with a focus on growth markets, covering 23 countries with a €330 billion fashion market and population of over 2.5 billion people. GFG will market a wide assortment of leading international apparel and accessories brands, a tailored selection of private labels and local assortments developed for specific ethnic markets notably in India, Indonesia and the Middle East.

Kinnevik said it expects completion of the remaining roll-up transactions in Q1 2015.

As part of the deal, all the direct and indirect shareholders in the five existing e-commerce companies will contribute their shares into a newly formed Luxembourg-based entity. The three largest shareholders in GFG will be Kinnevik, Rocket Internet and Access Industries, with 25.1 per cent, 23.5 per cent and 7.4 per cent ownership interests, respectively.

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The GFG companies will continue to be led by their respective founders and management teams with a few select additions to the leadership team.

Interestingly, the development comes parallel to talks where Amazon is in discussions to buy Jabong. With a deal size pegged to be in the $1.1-1.2 billion bracket, as first reported by VCCircle, it could be the biggest acquisition in the history of the Indian e-commerce space.

(Edited by Joby Puthuparampil Johnson)

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