Flipkart Buys Myntra: Flipkart Acquires Myntra @ Approx USD 350 Million
After around an year of several Yes and No’s, finally both the companies have joined hands with each other. Today, Mukesh Bansal, officially announced the deal in a conference held at their office in Bangalore.
During the initial talks, where the investors were found to be keen on merger, Mukesh decision was found dwindling. Also, it was expected that this would be a one sided deal and there would be nothing for Myntra to gain from.
The results, however, seem to indicate towards a win-win situation for all. No financial details have been disclosed, but the deal size is expected to be valued at approx. USD 350 million.
Post merger, both the entities will run separately and Mukesh will head the Fashion division of both Flipkart and Myntra. Also, there are plans to infuse USD 100 million in the fashion space in near future.
Since its inception in 2007, Myntra has grown as a brand among the consumers in fashion apparel space. The platform receives over 50 million visits every month and services over 9,000 pin codes across the country. Flipkart, on the other hand, has not been able to cater this segment to a large extent. It offers although over 15 million products across 70+ categories. With a registered consumer base of 18 million, it currently has 3000 sellers on platform and is enabling around 5 million shipments per month.
As we already said, this merger will not only annihilate the competition between the two of them but also help them to build a success for other global brands. In the history of Indian ecommerce, both these brands have been popular for raising large sums of money. With common investors, it won’t be an exaggeration to say that they are now ready to break their own records in all segments, whether the funding or the GMV.
This article originally appeared at IamWire.