New Delhi, May 22: Homegrown e-retailer Flipkart acquired online fashion portal Myntra on Thursday in what could be the biggest consolidation in India’s e-commerce sector. Flipkart said it would invest $100 million in the fashion business.
“It’s a 100 percent acquisition and going forward we have big plans in this segment,” said Sachin Bansal, co-founder of Bangalore-based Flipkart.
Myntra has sent invitations to the media for a conference in Bangalore today to announce a “strategic development” but did not divulge further details.
The stake acquisition has been in the works for a few months now, with the final details being worked out in the past few weeks.
“We will be unable to comment on market speculation at this stage,” a Flipkart spokesperson said.
Financial details of the deal were not disclosed but a source in the company said the transaction was valued at close to $300 million.
India’s e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop. Flipkart started in 2007 as an online bookstore and now sells products across categories, including fashion and electronics. It now also sells white goods and furniture.
Myntra sells products from over 650 brands like Nike, HRX by Hrithik Roshan, Biba and Steve Madden and clocked revenue of about Rs 1,000 crore in the previous financial year.
It aims to double its revenue in this financial year as it expands its seller base and adds products.
Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end.