Flipkart which started as book e-tailer, is going big on fashion.
The Bangalore-based firms plans to invest $100 million in the fashion business post this buyout.
"This has been an open secret now. Yes, we have acquired Myntra, and we are getting together to create one of the largest e-commerce stories of the country," said Sachin Bansal, founder & CEO of Flipkart.
As part of the deal, Mukesh Bansal, founder, Myntra, will be part of Flipkart's board and will be heading the fashion segment for both Myntra and Flipkart, which will function as separate entity. Myntra will continue to retain the same management team.
"We have achieved a leadership position in the fashion space in the country, despite severe competition. We share a very deep relationship with various fashion brands. I have great respect for Sachin and Binny. I feel this is a game changing equation in e-commerce space," says Mukesh.
On asked about the valuation of the deal, both parties refused to comment. "I can only say that the valuation has been fair and I am happy with it," said Mukesh.
"Fashion is the most important category for us. We strongly believe that the future of fashion is e-commerce," said Binny Bansal, founder and COO, Flipkart.
The market size of e-tail industry is expected to grow from 3 billion in 2013 to 50 billion by 2020.