Flipkart buys Myntra, to invest $100 mn in fashion biz

Flipkart buys Myntra, to invest $100 mn in fashion biz

Leading online retailer Flipkart.com announced on Thursday that it is acquiring online fashion retailer Myntra in a deal which marks the biggest consolidation in the e-commerce space in India.

While the companies did not disclose the deal size, sources suggest the deal could be worth about Rs 2,000 crore.

"It is a 100 per cent acquisition and going forward, we have big plans in this segment. Flipkart and Myntra are getting together to create one of the largest e-commerce stories and together we will dominate the market," Flipkart co-founder and CEO Sachin Bansal said. Asked about valuation, the companies declined to comment. "We, at Flipkart, believe that we want to be leaders in every segment and fashion is a category of the future, this acquisition will help us become leaders in this category," he said.

Sachin said Flipkart will invest $100 million (around Rs 600 crore) in its fashion business in the near term. Flipkart, which started in 2007 as an online bookstore, sells products across categories, including fashion and electronics. It also sells white goods and furniture. It currently has 18 million registered users and executes five million shipments per month, offering over 15 million products across 70 plus categories. 

The move is expected to help Flipkart strengthen its apparel portfolio and compete more aggressively with peers like Amazon and Snapdeal. A rapidly growing company based in Bangalore, Myntra is a brand with strong relationships, having partnered with more than 650 leading fashion and lifestyle brands in the country.

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