Putting an finish to several weeks of speculation by what has been called because the greatest acquisition within the Indian e-commerce business, domestic e-store Flipkart introduced it has acquired rival and leading fashion e-tailer Myntra.com. The move is broadly being read like a reaction to global e-commerce leader Amazon’s increase of their year-old India procedures, and also the thinning gap between Flipkart’s sales which of fast-growing rival Snapdeal.
No particulars around the deal size or structure were shared, and analyst speculation pegging the cash out in excess of $300 million continued to be unconfirmed by both companies. Both companies is going to be run individually, without any immediate intends to merge the style business around the two sites or perhaps get together when it comes to content or go-to promote. Myntra Boss Mukesh Bansal joins Flipkart’s board, and can mind the style vertical at Flipkart and Myntra. Additionally they introduced that although Myntra employees would “remain in current positions”, they'd be provided investment in Flipkart.
Flipkart co-founder Sachin Bansal was adamant this would be a “completely different acquisition story” as it wasn't “driven by distress”, alluding to an array of small e-commerce gamers either getting ended up or been bought over previously 2 yrs. Together, both company heads stated, these were scripting “one from the biggest e-commerce stories”.
$100 m investment popular vertical
Mr. Mukesh Bansal stated that by itself Myntra.com held 30 percent from the share of the market, but together the 2 companies would take into account 50 percent from the online fashion market.
“We aspire to take this figure to around 60-70 percent within the lengthy-term,” he stated. Mr. Sachin Bansal added that Flipkart would invest $100 million in the own fashion vertical within the near-term. As the electronics vertical may be the biggest revenue generator at Flipkart (and will still be despite buying), Mr. Bansal wished that within the near-term fashion will be the “largest sales category for Flipkart”. Flipkart began fashion like a shopping category on its site 2 yrs ago.
No particulars around the deal size or structure were shared, and analyst speculation pegging the cash out in excess of $300 million continued to be unconfirmed by both companies. Both companies is going to be run individually, without any immediate intends to merge the style business around the two sites or perhaps get together when it comes to content or go-to promote. Myntra Boss Mukesh Bansal joins Flipkart’s board, and can mind the style vertical at Flipkart and Myntra. Additionally they introduced that although Myntra employees would “remain in current positions”, they'd be provided investment in Flipkart.
Flipkart co-founder Sachin Bansal was adamant this would be a “completely different acquisition story” as it wasn't “driven by distress”, alluding to an array of small e-commerce gamers either getting ended up or been bought over previously 2 yrs. Together, both company heads stated, these were scripting “one from the biggest e-commerce stories”.
$100 m investment popular vertical
Mr. Mukesh Bansal stated that by itself Myntra.com held 30 percent from the share of the market, but together the 2 companies would take into account 50 percent from the online fashion market.
“We aspire to take this figure to around 60-70 percent within the lengthy-term,” he stated. Mr. Sachin Bansal added that Flipkart would invest $100 million in the own fashion vertical within the near-term. As the electronics vertical may be the biggest revenue generator at Flipkart (and will still be despite buying), Mr. Bansal wished that within the near-term fashion will be the “largest sales category for Flipkart”. Flipkart began fashion like a shopping category on its site 2 yrs ago.