India-based fashion and lifestyle online store Jabong may be acquired by payments services provider Paytm or conglomerate Aditya Birla for $500m to $800m, LiveMint reported yesterday.
The talks are being led by investment firm Kinnevik, the largest shareholder of Global Fashion Group (GFG), the owner of Jabong. Kinnevik is also negotiating on behalf of e-commerce group Rocket Internet, another shareholder of GFG.
The sale would also provide an exit to UK government-backed institution CDC Group, which provided $27.5m in series B funding in January 2014.
Jabong operates an online store for fashion items, sports apparel and homeware.
The company reported a loss of $69m last year, and has had to shut its UK design office earlier in September. Jabong is also seeking a new chief executive after co-founders Praveen Sinha and Arun Chandra Mohan decided to exit the company.
Previously, e-commerce company Amazon was in talks with Jabong to acquire the company for $1.2bn, but the deal fell through in early 2015 due to the high valuation.