Myntra, Jabong to merge, CEO to stay
Online fashion retailer Myntra on Friday said it would completely integrate its sister firm Jabong, which will continue to operate as a separate brand.
Ananth Narayanan will lead the Myntra-Jabong team, a statement said on Friday.
The development comes amid reports that Narayanan was looking to quit because of the new reporting structure at Flipkart.
On Tuesday, Binny Bansal had resigned as Flipkart’s group chief executive officer.
Flipkart’s parent Walmart had then said in a statement that Kalyan Krishnamurthy will continue to be the CEO of Flipkart.
The statement had further said that though Myntra and Jabong would continue to operate as separate platforms within the Flipkart business, CEO Narayanan will report to Krishnamurthy. Similarly, Sameer Nigam would continue to lead PhonePe (a payments app acquired by Flipkart in 2016) as the CEO. Both Krishnamurthy and Nigam will report directly to the board.
The latest development is seen as a move by some to placate Narayanan. Since Myntra’s purchase of Jabong, the two brands have been steadily integrating key business functions and streamlining processes. “As the next step in this process, Myntra and Jabong will now fully integrate all the remaining functions, including technology, marketing, category, revenue, finance and creative teams,” the Myntra statement added.
The company further said that Myntra’s independence as a business will be preserved and the team will continue to operate independently.
“The closer integration of Myntra and Jabong is a necessary step in our continuing development. By better aligning our resources with our long-term plans, we can put the best structure in place to serve our sellers and brand partners and ultimately benefit our customers,” it said.
Flipkart had acquired online fashion portal Myntra in 2014 and Myntra had acquired Jabong in 2016.
Clearing the air over recent reports, Narayanan told PTI, “I continue to be here and I continue to lead the business.” He had joined Myntra as the chief executive in 2015, succeeding Myntra co-founder Mukesh Bansal. It is, however, learnt that CFO Dipanjan Basu has put in his papers.
Bansal had quit following a probe into allegations of “serious personal misconduct”. The investigation gave a clean chit to Bansal as the probe “did not find evidence to corroborate the complainant’s assertions” against him