Myntra CEO Ananth Narayanan will be the new CEO of Jabong, replacing Sanjeev Mohanty, Business World reported. In an email to Jabong employees, carried by Business World, Mohanty said the transition was effective immediately and he would continue to assist in the acquisition process. The move comes hours after Flipkart-owned Myntra bought Jabong for $70 million in cash.
In his email, Mohanty said: “I would also like to let you know that today, I will be stepping down as the CEO & Managing Director of Jabong while I will continue to help in the transition process till mid September. Ananth Narayanan will be stepping in immediately , as the CEO of Jabong in addition to being the CEO of Myntra. You will see that he is an outstanding, capable and visionary leader who has already taken Myntra to new heights of success in a very short span of time,” Mohanty said in his email.” Mohanty took charge as CEO and Managing Director in December last year.
In an interview to The Economic Times, Narayanan said the company will retain Jabong as is and will not merge it with Myntra.
“We intend to keep Jabong as an independent company. We will run it. It is the whole point about growth and synergy and we will absolutely run Jabong and Jabong has very strong Indian and international brands. Wherever there are possibilities to leverage each other, we will.”
Even as the development is expected to prove beneficial for Jabong considering that the loss-making e-tailer was looking for investment, experts believe the move could also strengthen Flipkart’s leadership position in the market in wake of the increasing competition it faces from Snapdeal as well as Amazon. “Fashion (especially women’s fashion) is a top category on e-commerce platforms in terms of transaction volume and growth, and also one of the most competitive due to lots of brands and manufacturers,” said Sandy Shen, research director at Gartner.
Acquisition of Jabong is the eighth for the Flipkart Group since 2010, including that of Myntra in 2014 for $300 million.