Rocket Internet (investor in Jabong.com), which initiated a global move to put all its fashion related e-commerce brands under a new brand called GFG (Global Fashion Group) has now moved closer to achieve that objective. As per a filing by Swedish investment firm Kinnevik, the company has got all necessary clearances from anti-trust and financial authorities.
Kinnevik is a crucial investor in Rocket-backed e-retail ventures, including Jabong.com. Apart from Jabong, GFG will comprise Dafiti (Latin America), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia) covering 23 countries.
As per its filing, the GFG will see all current shareholders in Rocket’s existing e-commerce ventures pooling in their shares into this newly formed, Luxembourg based entity. Post formation, the three largest investors namely Kinnevik, Rocket Internet and Access Industries will hold 25.1, 23.5 and 7.4 percent stake respectively.
All the five e-retail ventures will continue to function in their current capacities, with their current management intact. However, there will be certain new additions in their top leadership.
Though this move had been announced by Rocket Internet earlier, it has suddenly become far more interesting with respect to Jabong as compared to the other four ventures. Recent reports have indicated that post Flipkart’s Myntra acquisition, Amazon India was reportedly in talks with Jabong for a staggering $1.2 Billion acquisition. This acquisition, which will eat up a majority of Amazon’s $2 Billion war-chest for India, will be the biggest ever in India’s e-commerce market.