It is has been reported that retail giant, Future Group is likely to purchase online furniture store FabFurnish. German company Rocket Internet, which owns FabFurnish and Jabong, is keen that Future Group takes over the latter as well; however, The Future Group Founder & CEO Kishore Biyani is not interested in Jabong, as of now.
A person familiar with the developments, said on condition of anonymity, “The two are in definite talks to close the FabFurnish deal. Sale of Jabong is still at the proposal stage and no talks have started on it yet.”
Rocket Internet has been looking to sell off FabFurnish and Printvenue (a venture that offers customised printing) for a while now. The company was even believed to be mulling over plans to shut down if an appropriate buyer would not materialise. FabFurnish could potentially be sold for a sum between $5 to 10 million, said a source.
Biyani, founder and CEO of the Future Group had expressed his ire against the online retail industry just a few days ago. He had said that a majority of online stores would be forced to shut down in the next six months, owing to their heavy losses.
Biyani has always been quite vocal about his dissent on the online retail industry. One wonders what made him change his stance so drastically, that he is in the process of being a part of ecommerce himself. Perhaps he believes that he will be able to turn around the fortunes of an ailing enterprise whether online or offline? Or does he believe that there is indeed great scope in the online industry? It is strongly believed that the future of retail is omni-channel. With the acquisition, the Future Group would be in a stronger position to take advantage of the changing scenario.
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