India’s leading e-commerce site Flipkart is in merger talks with fashion retailer Myntra, as common investors are pushing for consolidation and merger of the two giants.
India’s leading e-commerce site Flipkart is in merger talks with fashion retailer Myntra, as common investors are pushing for consolidation and merger of the two giants.
The proposal is being pushed forward by their common investors Accel Partners and Tiger Global as per reports.
A report carried by Times of India explained the proposal being rolled out by Flipkart to acquire Myntra in mergers and acquisitions. The key decision will be taken in two weeks.
Flipkart has been looking to expand in newer categories such as fashion retailing and had been rolling out plans to expand its business in fashion apparels section. Flipkart is targetting a gross merchandise value of $1 billion and plans to have a complete portfolio to beat its challengers.
Flipkart has raised $540 million so far from investors including Accel, Tiger, Dragoneer Investment Group and Morgan Stanley Investment Management. In October last year, it managed to raise $160 million, taking its Series E-funding to be the largest ever by any Indian Internet retailing firm.
India’s nearly $3.1 billion e-commerce market is small in comparison to China’s $200 billion market for online sales, but is expected to grow by seven times to $22 billion in five years, according to a CLSA report.
Recently reports were doing the rounds that Myntra wanted to raise its capital and one way was to merge with Flipkart. Though meetings with Flipkart were underway, no official confirmation had been passsed out. But, once the merger of Flikart-Myntra is complete, it will be a challenge for leading players like Amazon and Snapdeal to compete with Flipkart-Myntra in terms of business strategies and drawing consumer base.
Here's what Twitter users had to say on the news:
Trishla Baid Arora ?@AlwaysTrishla 7m
So #Flipkart n #Myntra to merge...flyptra? Mynkart....
Pranav Sapra ?@pranavsapra 22m
If the Flipkart and Myntra deal doesn't come through for some reason, Myntra will offer a coupon to Flipkart for trying again.
PJ ?@BeingPractical 32m
On a serious note, Flipkart & Myntra merger is the best fit for Flipkart, provided they keep Myntra as independent brand too.
Sahil Parikh ?@sahilparikh 38m
Flipkart and Myntra, do what the investors say. You don’t have a choice.
haili ? ?@JaniShaili 42m
Move over lenovo and Motorola, flipkart & myntra is the next big story ;) guess today is the day of acquisitions!
Chiragh Kirpalani ?@cKirpalani 44m
Heard Flipkart & Myntra are merging! This can be huge for e-commerce India taking on Amazon and eBay and rest of the players.
Jatin Patel ?@jatinpa27326893 51m
Flipkart (India's E-commerce Big Daddy) in merger talks with Myntra (India's largest fashion online retailer)
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