India’s biggest e-commerce player, Flipkart, is all set to acquire its rival and second-biggest e-commerce website in India, Myntra, in merger deal worth U.S. $330 Million. TechCrunch reported this news today, citing that it had confirmed news from highly placed sources , involved directly in the deal.
TechCrunch, reported that “At least three people directly familiar with ongoing talks said the Myntra board started taking investors’ approvals for the sale in March. The deal values Myntra at around $330 million. Flipkart has been valued at around $2.5 billion in this transaction, according to one of the persons“.
This news has confirmed a similar news by The Tech-Portal Network, regarding amerger deal between Flipkart and Myntra. But that deal slowed down as Myntra raise fresh U.S.$ 50 Million in funding.
But as TecCrunch reports, their common investors Accel Partners and Tiger Global did not give up. The stakes are too high for them, especially with Amazon beginning to build pressure through its online marketplace model and Walmart preparing its e-commerce foray in India. Moreover, online fashion buying is a category where Flipkart can use Myntra for widening its gap over everybody else.
The current deal is said to be fuelled by a push by the common investors (Accel Partners and Tiger Global) in the two e-commerce giants, in order to fend-off any damage that Amazon and Ebay might cause. Although Amazon and Ebay are yet to get strong footholds in Indian e-commerce market, but this measure by Flipkart and Myntra would completely isolate their foreign rivals from competition.
Flipkart has been valued at around $2.5 billion in this transaction, according to one of the persons. In February this year, Myntra raised $50 million from a group of investors led by Premji Invest, the investment company floated by Azim Premji, Chairman of Wipro.