Flipkart + Myntra. A Proposed Merger That'll Dominate Indian e-Commerce.
India's most favored e-commerce site Flipkart has proposed Myntra a merger propelled by the common investors (US hedge fund Tiger Global and venture capital firm Accel Partners) shared by these Bangalore-based startups. Mukesh Bansal, Co-founder, Myntra, sided with the smaller investors like IDG Ventures and Kalaari Capital who prefer raising another round of funds rather than trading off the company at this point. A final decision on this topic shall be out within a fortnight.
Flipkart's offer is more like an acquisition, but Myntra shall enjoy being a separate entity, with the existing management running the business with synergy benefits of controlling the domestic online fashion domain. Flipkart has also been interacting with other smaller players in the fashion circuit for a potential takeover.
Flipkart's offer is more like an acquisition, but Myntra shall enjoy being a separate entity, with the existing management running the business with synergy benefits of controlling the domestic online fashion domain. Flipkart has also been interacting with other smaller players in the fashion circuit for a potential takeover.
Replies
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Kaustubh Katdare...it's just a beginning. A move by the investors of Flipkart to make sure that Flipkart does not fail; because if it fails - everyone loses money. Expect more consolidation to happen so that Flipkart is ready to be acquired by Amazon 😀 -
Satya Swaroop DashBoth of these online retailers have a strong a market presence and if they work together they can be in a symbiotic relationship. Flipkart was late to venture in the clothing department and if it goes ahead with the merger it will be able find more customers through Myntra. Myntra guys can also use the extensive and effective delivery system of Flipkart.
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Ankita KatdareEvery once in a while, a big player swoops in and gulps down a good business.
Will Amazon eat Flipkart? - that is the question we are looking at in near future.
I have heard really good reviews about Myntra. They deliver very fast and have 30 day no question return policy. It only goes to say that it has been doing well on its own.
PS: News has it that Twitter might come in with an easy-to-use, hassle free e-commerce website. Wait, what? 😲
So, the next time around we will be discussing - I tweeted to the store about how 10 minutes delivery time is too long! -
Kaustubh KatdareUpdate: ET is now reporting that the two companies are in close talks to either form a partnership or opt for merger. Investors Accel and Tiger Global have been pushing for the merger between the two ecommerce companies for several weeks. The move can be seen as a way to offer a strong competition to Amazon which is spreading its wings in India at a rapid pace.
While the sales numbers at Flipkart have already passed $1billion; the company is still struggling to find a business model that keeps the cashflow positive. Myntra has already clocked about Rs. 1000 cr in sales and is aiming to be profitable by the year end.
The question is - can Myntra+Flipkart together fight Amazon? 😀
You are reading an archived discussion.
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