<div>Online fashion retailer Jabong.com is looking for a buyout. The parent company — Global Fashion Group (GFG) — is in talks with Paytm to sell the online fashion retailer.</div><div> </div><div>AB Kinnevik, the largest shareholder of GFG, is spearheading the sale process and is reaching out to other potential suitors for selling Jabong, according to a report in <em>Mint</em>. Kinnevik is also negotiating on behalf of Rocket Internet, which owns more than 21 per cent of GFG. It wants to sell its stake in the money-losing Indian fashion store ahead of GFG's proposed stock market listing, they added. Kinnevik owns more than 25 per cent of GFG.</div><div> </div><div>The talks are at a very early stage and the valuation of Jabong is being pegged at anywhere between $500 million and $800 million, the newspaper reported.</div><div> </div><div>The company was launched in 2012, and is headquartered in Gurgaon. The report states that Jabong had sales of Rs 811.4 crore and a loss of Rs 454 crore for the 2014 year ended December 31. The company even shut its offices in London and moved to India to cut losses even further.</div><div> </div><div>If the stake sale by GFG goes through, this could be one of the largest deals in the Indian online fashion industry after Flipkart's purchase of Myntra in May 2014.</div><div> </div><div>According to media reports, Amazon India held talks with Jabong for a potential buyout in November last year. However, the deal fell through at the beginning of 2015 after Jabong asked for a $1.2 billion valuation.</div><div> </div><div>Jabong was founded in 2010 by Mohan, Sinha and two other promoters who have since left the company. Its owners German e-commerce group Rocket Internet in September last year merged Jabong with four other online fashion retailers in Latin America, Russia, Middle East, Southeast Asia and Australia to create Global Fashion Group (GFG), an entity that was valued at 3.1 billion in July.</div>
