FLIPKART, the country's largest online retailer, is close to clinching a deal for the acquisition of Myntra. com, the biggest online fashion apparel store, according to reliable sources.
The deal values Myntra at around
The formal announcement of the deal is likely to come within this week.
Flipkart, founded in 2007 by former Amazon employees
The combined entity will give the two domestic companies the requisite muscle to stave off competition from US giant Amazon.
An estimate by CLSA Asia- Pacific Markets projects the Indian online market to jump more than sevenfold to
Flipkart said in a statement that it does not comment on "market speculation." The two companies have been very tight- lipped on the merger talks. The two companies are reported to be in direct talks with each other without involving any investment banker, sources said.
In 2012, Flipkart had acquired letsbuy. com, a portal selling electronic products.
Flipkart started business as an online books and music CDs stores and since diversified into products including smartphones, cameras sports goods.
Apparel and footwear are now its fastest- growing areas, according to the online retailer.
The deal is being watched closely because of the competition it will trigger in the e- commerce segment. Snapdeal and Amazon also compete for upper middle- class consumers in this segment.
The government does not allow foreign direct investment in e- commerce. Amazon and
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