MUMBAI: With the rivalry rising in the e-commerce space, it looks like the Indian arm of Amazon is ready to heat it up a notch.  The e-tailer is reportedly in talks with Indian fashion site Jabong to acquire it.

According to a report in a leading daily, the talks are at a preliminary stage and despite being valued at around $500 million in a recent regulatory filing, Jabong is holding out for $700 million as it reports to have multiple suitors.

Denying commenting on the speculations, Amazon said, “We do not comment on anything we may or may not do in the future.”

The report quoted a person working with the US e-tailer as saying that Jabong was ideal for acquisition since Flipkart had acquired Myntra in May for around $330 million.

Flipkart-Myntra reportedly has 50 per cent of India’s online fashion retail market share with Jabong at 25 per cent.

Amazon CEO Jeff Bozos had promised to invest $2 billion in its India operations with a big chunk of it going towards acquisitions.

Fashion e-tailer Jabong is part of a global group after its investors German venture capital group Rocket Internet and with Swedish investor Kinnevik announcing a merger of five emerging market fashion start-ups. The merged entity is called Global Fashion Group (GFG) and worth about worth 2.7 billion euros or around Rs 21,000 crore.

The company's CEO Arun Chandra Mohan has also been pretty optimistic about the company's outlook and had said in a recent interview to the paper said, "I believe the valuation of my company is going to be significant. We are going to be a billion dollar business."

Amazon India started offering fashion products on its marketplace in May, and an acquisition offers a swift route to scaling up. In the US, Amazon chose a similar strategy to improve its fashion credentials by buying Zappos in 2009.