Speculations regarding this event had started building up almost 2 months ago, and the event has finally happened. Flipkart has India’s biggest online fashion giant, Myntra for a reported $300 million.
Tech-Portal had reported almost one and a half months back regarding this speculated acquisition, and it has finally happened. Although financial details of the acquisition haven’t been disclosed be either party, but it is speculated to be somewhere around $300 million. Tech-Portal had earlier speculated the amount to be $330 million.
Sachin Bansal, co-founder of Bangalore-based Flipkart said :
It’s a 100% acquisition and going forward we have big plans in this segment
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.