Snapdeal is understood to be on its way to acquiring online fashion retailer Jabong, Financial Express reported.
According to the report the term sheet is almost ready with Snapdeal's legal team visiting Jabong's office in Gurugram," two people close to the development told the publication on condition of anonymity. The Global Fashion Group (GFG)-owned Jabong has been on the lookout for a buyer for about a year now.
Jabong was founded under the banner of German incubator Rocket Internet in 2012. Swedish investment firm Kinnevik also owns a large stake in Jabong's parent Global Fashion Group.
Jabong's revenues dropped 7% to Rs 869.1 crore in 2015 from the year earlier but it trimmed losses to Rs 46.7 crore from Rs 159.5 crore after a clampdown on discounts, much as other ecommerce companies have done.