new delhi bengaluru flipkartowned myntra on tuesday pipped snapdeal and the future group to acquire rival jabong in a 70million allcash deal that creates indias largest online fashion destination reduces discounts and strengthens the bengalurubased companys prospects of keeping amazon at bay in this highmargin business the transaction caps months of seesawing talks between global fashion group and kinnevik the owners of jabong and multiple indian suitors according to two persons familiar with the transaction myntra eventually offered to pay more than the 50 million that snapdeal was willing to pay as well as the 35 million that future group was putting on the table a person close to snapdeal said the company dropped out of the race as jabong did not address issues that had arisen during due diligence the snapdeal spokesperson declined comment the sale process was competitive with multiple parties participating until the end and flipkart was the chosen suitor as its proposal delivered best value for all stakeholders a jabong spokesperson said myntra chief executive officer ananth narayanan said the largest consolidation in indias fashion ecommerce space will create an 800pound gorilla of fashion and lifestyle i dont think this is consolidation in the traditional sense i intend to run myntra and jabong as separate entities narayanan said in a telephonic interview with et he also assumes charges as ceo of jabong analysts say jabongs acquisition will be crucial for flipkart in indias dogeatdog ecommerce market with formidable players including amazon and upcoming challengers in chinas alibaba and japans rakuten the size of the indian online fashion segment is currently pegged at 2 billion and this is estimated to grow to 20 billion by 2020 surpassing consumer electronics as the singlelargest online category fashion especially womens fashion is a top category on ecommerce 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 the acquisition of a fashion platform is a move by flipkart to not only further penetrate the redhot category but also maintain its leadership position in the market and keep amazon at bay another industry expert said the biggest benefit of the acquisition would be that it would allow both entities to quickly reduce the burn or losses on discounts jabongs burn is expected to be slashed by more than half from 45 million to 12 million in the coming months myntras acquisition of jabong was first reported on wwweconomictimescom on tuesday morning jabong has lost sheen once a bright star and a vanguard of online fashion shopping in india jabong lost sheen lately as its investors decided against aggressively injecting capital into a business that thrives on heavy discounting for the fiscal year ended march 2016 jabongs total sales were rs 940 crore with a negative ebitda of rs 415 crore late last year jabong cofounders arun chandra mohan and praveen sinha were let go from the company its a