News Column

Flipkart snaps up Myntra. com

May 22, 2014

HOMEGROWN eretailer Flipkart on Thursday announced that it has acquired online fashion retailer Myntra in what is seen as the biggest consolidation in the country's e-commerce segment.

While the two companies did not disclose the size of the deal, it is estimated to be around ` 2,000 crore by sources in the know.

"It is a 100 per cent acquisition and going forward, we have big plans in this segment.

Flipkart and Myntra are getting

getting together to create one of the largest e-commerce stories and together we will dominate the market," Flipkart cofounder and CEO Sachin Bansal told journalists here.

The move is expected to help Flipkart strengthen its apparel portfolio and compete more aggressively with rivals like US retail giant Amazon and Snapdeal.

"We, at Flipkart, believe that we want to be leaders in every segment and fashion is a category of the future, this acquisition will help us become leaders ` ` ` ` ` ` ` ` ` `

leaders in this category," he said.

Sachin said Flipkart will invest $ 100 million (around ` 600 crore) in its fashion business in the near-term.

Private equity investors Tiger Global Management and Accel Partners are investors in both Flipkart and Myntra.

Flipkart hit the $ 1 billion (` 6,000 crore) gross merchandise value (GMV) mark in March this year, a year earlier than expected. The company received $ 560 million of funding since it started business as an online book store in 2007.

Myntra, which sells products from over 650 brands like Adidas, Calvin Klein and Levis, has a GMV of about $ 204 million.

GMV is an important ecommerce performance metric as the revenue depends on gross merchandise sold and fees charged.

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Source: Mail Today (India)

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