Domestic e-retailer Flipkart on 21 May 2014 announced that it has acquired rival and leading fashion e-tailer Myntra.com for 300 million US dollar. This is the largest-ever deal in the e-commerce market of India.
Both companies will be run independently, with no immediate plans to merge the fashion business on the two portals or even join forces in terms of content or go-to market.
Myntra co-founder and chief executive Mukesh Bansal will head the fashion business of both Myntra and Flipkart, and Myntra will operate as an independent entity and retain its website, while Flipkart will continue selling apparel on its site.
Flipkart’s and Myntra’s common investors Tiger Global Management, Accel Partners and Sofina Capital will get more shares in the merged entity.
The deal also comes at a time when the department of industrial policy and promotion (DIPP) has made a strong push for foreign direct investment (FDI) in e-commerce as part of its agenda for the new government.
The current policy does not allow FDI in business-to-consumer e-commerce even as 100 per cent FDI is allowed in business-to-business e-commerce.
When: 21 May 2014