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US Based Fab Officially Absorbs Indian True Sparrow. A Long Overdue Act Or Strategic Decision?
New-York USA based Social E-Commerce Company Fab.com has officially purchased its long-time Indian partner team True Sparrow Systems. Though the exact figures have not been disclosed, it appears to be cash & stock deal with incentives thrown-in based on future financial performance.
While it is not clear whether the 85 member team of True Sparrow will continue working in Pune, India; one thing is for sure, the company actually never worked for anyone else other than Fab. True Sparrow was deeply involved with the US based company & acted as a strong technology backend for it.
One might even go on to say that such an acquisition was a long overdue decision that should have been taken a long time ago. Started in 2007, True Sparrow has a close-knit history it shares with Fab. True Sparrow Systems (TSS) was founded by husband-wife duo Nishith and Deepa Shah, who later in 2010 partnered with CEO and co-founder of Fab.com Jason Goldberg to establish Fabulis, a social networking site designed exclusively for men with same-gender preference. Surprisingly, when this did not generate adequate traction, Goldberg realigned it on a more mainstream eCommerce site for design centric product and renamed the company to Fab.com.
Interestingly, the Shahs are also co-founders of Fab.com. The acquisition finally acknowledges the deep ties the two companies on separate continents shared. While the US market offers a great way to offload designer products which are fresh off the line, India on the other hand is satisfied with approaching grey sites.
Fab has so far managed to raise US$ 169 Million in four rounds of funding & counts over 9 million customers. What needs to be seen is how Fab intends to use this acquisition.
Image Courtesy | yourstory.in
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2012-11-08 14:00:16
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