On July 26th, Gaurav Alagh, a former journalist turned entrepreneur, was having a bit of a bad day and he was getting rilled up on Twitter. His navy blue polo T-shirt hadn’t come in, which he had ordered from fashion e-commerce start-up Jabong on July 17th. This happened to be the very same day Flipkart’s subsidiary Myntra had announced that it had acquired the start up, it once trailed for an undisclosed amount.
Sanchit Vir Gogia, who is the Chief Futurist, Founder and CEO of Greyhound Knowledge Group also agrees with the notion of Jabong having a lack of funds to take advantage of Myntra’s failures.“VCs don’t grant funds so easily,” said Gogia, highlighting an inherent problem which prevented Jabong from scaling up.
Gogia also highlights that international players like Amazon have a vast experience in customer service, something which a start-up like Jabong simply can’t match.
“When you’re a start-up the initial idea can only take you so far, you need to keep innovating at a very fast pace to succeed,” says Sanchit Vir Gogia, giving more credence to the fact the team at Jabong lacked innovative ideas.
“Apart from the main executive team, this doesn’t seem like an acquisition for talent, Myntra has mostly splurged the cash for Jabong’s user base,” he added.
Source: PCMag.com