Finally It is confirmed that India’s largest e-commerce firm Flipkart has acquired Myntra.com. Few days back, we reported that both companies had finalize the deal and was expected to announce it soon. Today, they confirmed the deal but they didn’t disclose the merger amount. But reports confirmed that the deal is worth around $300 milllion.
Sachin Bansal, co-founder and CEO of Flipkart confirmed that this is the 100% acquisition but both companies will operate separately. He also said that Flipkart would invest $100 million in the fashion business.
Myntra’s co-founder and CEO Mukesh Bansal will join Flipkart board and will lean the fashion business at Flipkart. It is worth to note that Mukesh Bansal will remain the CEO of Myntra.
Mukesh Bansal, co-founder and CEO of Myntra said, “We are excited to partner with Flipkart, the biggest e-commerce platform in India. Sachin, Binny and their team have built a pioneering e-commerce platform on a foundation of strong technology and customer centricity. Flipkart is the most powerful e-commerce brand in India and has a very ambitious agenda to build the next generation of retail in India. Leveraging mutual strengths, we will build Myntra into India’s leading fashion powerhouse and create many original fashion brands”.
Flipkart is the largest e-commerce platform in India with more than 18 million registered users and 15 million products listed. It has also raised more tha $540 million in past 7 years.
Today, Snapdeal has also raised $100 million to achieve the valuation of $1 billion. After this deal, market competition will become harder. Snapdeal and Amazon will have to work harder. It will be also interesting to see how Flipkart and Myntra will manage to increase Indian e-commerce market.
