Jabong is Finally Buried: Walmart Sets Its Priorities For Flipkart IPO!

Must Read

How To Leverage On Cold Calling to Help You Win Big In 2021

Cold calling is an old-fashioned sales strategy that involves sales representatives reaching out to prospective customers who have not...

With Free Delivery and Zero Surge Pricing, What’s Swiggy Upto?

Be it fancy, hearty meals delivered at door-step or being the savior of late-night food cravings - Swiggy has...

Are You A Gaming Geek: ‘Five Commandments’ Before You Buy Video Games Online !

Does your day start with joysticks instead of coffee mugs? Or as a kid your best friends were the...

At long last, Flipkart has performed the sacrificial rites of Jabong, with sights set on the much-awaited IPO.

The burial of Myntra’s strapped cousin comes three months on the back of Walmart announcing it had taken a non-cash impairment charges of $293 million for the value of the Jabong trade name in the third quarter.

The shut-shop is in line with Walmart’s Executive Vice President and CFO Brett Biggs, who had claimed only last year that the firm had decided to consolidate back-office functions for Myntra and Jabong to up efficiencies.


As it turns out, in a video message featuring Flipkart CEO Kalyan Krishnamurthy and boss Doug Mcmillon, underlining their priorities, Walmart has decided to channelize its laser-like focus on areas like grocery and fashion as well as making investments in technology and infrastructure.

With a desire to “step on the gas” in India, the move could portend the e-commerce giant moving towards a possible $10 billion IPO. Jettisoning a nearly $300 million write-off in one of its units could help propel its valuation if plans of the IPO follow through.

For the Jabong brand, the writing has been pretty much on the wall ever since Walmart acquired Flipkart in November 2018. Soon after, Flipkart went on to merge Myntra and Jabong, which had no adverse effect on their market share.

Jabong.com was a fashion e-commerce entity that Flipkart had acquired through Myntra in 2016 for $70 million in cash, before the eventual absorption.

For some time now, Jabong continued to fade out as its compatriot Myntra gained in prominence.


Seeing an approximately 13% drop in app downloads for the brand in December 2019, it continued its downward spiral while Myntra’s app downloads rose sharply by 40%. Looking at the stark overlap in fashion demand trends, customer base, and marketing investments, funneling out energies in favour of a single premium fashion-focused platform looks like a logical move in hindsight.

Having been added to the arsenal to take on the muscle of Amazon and other rivals in India, Jabong, founded in 2012, had over 1,500 brands, sports labels, Indian ethnic and designer labels, and excess of 1.5 lakh styles in its kitty, as per Myntra’s acquisition statement in 2016.

Presently, Myntra hosts over 3,000 brands on the platform, boasting close to 22 MAUs.

Looking at the events that have transpired, such restructurings are impending signs that a company is intent on going public, and the Arkansas-based giant aims to put the best foot forward to make the IPO more attractive.

The blockbuster US IPO could well occur this very year, with the listing expected to fetch Flipkart a valuation of $40 billion after the culling of Jabong. Walmart would possibly have to divest a 25% stake for it though, according to some analysts.

Now, as Walmart owned Flipkart plans to make the fashion and clothing sector its cynosure, it sure has made the moves to justify it. Recent investments in the leading Aditya Birla Fashion and Retail Limited, Arvind Fashions, and USPL can all attest to that.

According to McKinsey’s FashionScope data, the Indian clothing market will be worth $59.3 billion by 2022, making it the sixth-largest marketplace worldwide. Seeing this vast untapped land, even in the presence of formidable foes, Flipkart’s pedal on the metal is sure to shake up things in the sector.

Stay tuned for more updates.


Please enter your comment!
Please enter your name here

Latest News

Future Retail Can’t Sell Its Assets To Reliance Retail: Singapore Tribunal

In a double victory for Amazon, the Singapore International Arbitration Centre (SIAC) has denied Future Retail's appeal to lift the temporary suspension...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This