Flipkart buys Myntra.com

[theserpent]

Marking the biggest consolidation in the e-commerce space in India, homegrown e-retailer Flipkart has acquired online fashion retailer Myntra in an estimated Rs 2,000 crore deal.
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 told reporters here.
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 USD 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.
The move is expected to help Flipkart strengthen its apparel portfolio and compete more aggressively with peers like Amazon and Snapdeal.
Myntra will continue to operate as a separate entity with its co-founder and CEO Mukesh Bansal joining Flipkart board and heading the fashion business.
“It was very essential to keep Myntra a separate entity and preserve its culture. I’m here for the long haul and we will continue to grow in the market,” Mukesh Bansal said.
India’s e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop. While apparel and electronics are bestsellers for most e-commerce firms, categories such as home decor and household items are also popular.
The industry, estimated to be worth about USD 3 billion currently, has firms such as Snapdeal, eBay and Amazon which follow the marketplace model.
Led by increasing Internet penetration and youngsters shopping online, Flipkart’s annualised sales crossed USD 1 billion (over Rs 6,100 crore) a year ahead of target. It had estimated to reach the billion dollar mark for gross merchandise value by 2015.
Flipkart, which also operates under the marketplace model allowing retailers to offer products on its platform, has since its inception raised over USD 500 million from investors.
The Bangalore-based firm, founded by Sachin Bansal and Binny Bansal, counts Naspers, Tiger Global, Accel Partners, Dragoneer, Morgan Stanley, Sofina and Vulcan Capital among its investors.

GG Flipkart

 

[snap]

wtf :\

 

[theserpent]

But do people really buy fashion online?I would still preffer going to the shops and buying it..it's hassel free

 

[saswat23]

Competition is gonna be less

 

[Nerevarine]

But do people really buy fashion online?I would still preffer going to the shops and buying it..it's hassel free

well, people do buy clothes online..my sister is crazy online shopaholic.. Last time i checked, she had 53 dress jeans thingies on her cart in jabong..
Myntra was my least favourite fashion website.. Maybe merging with flipkart will change that..
No one likes a monopoly though

 

[krishnandu.sarkar]

Yeah just read that in TOI. We are going to miss the best return policies

Flipkart will screw it up like theirs.

 

[sandynator]

Yeah just read that in TOI. We are going to miss the best return policies

Flipkart will screw it up like theirs.

I'm too afraid of that & add to that best Offers & Discounts as well. Flipkart will definately screw myntra

 

[$hadow]

Myntra will work as a different website all together. It is only bought by fk but will not be merged into fk.

 

[SaiyanGoku]

Its becoming a trend, one big company buying a bit smaller one.
though i never bought clothes online, having an option other than flipkart wouldn't hurt.

 

[Vyom]

having an option other than flipkart wouldn't hurt.

Forget about it.

It's the nature of business. Big fish buys smaller fish.

I was disappointed when FK bought Letsbuy. Which was a direct competitor in electronics for them. Similar trend continues.

FK is on its verge to become the Amazon of India.

 

[fz8975]

myntra had really good return policy (I had returned shoes twice )..
also great coupons...

 

[.DMG]

I hate monopolies.

 

[theserpent]

I hate monopolies.

Exactly.
Presently,Whenever I want to buy something online it's either flipkart or amazon.Well I preffer flipkart more,But lately flipkart has killed itself by introducing third party sellers and also this 1 day delivery thing has affected normal delivery... delivered in 2-4 days has changed to 4+ days for all products

 

[Ironman]

"MONEY ----- Who Needs Mah Money !" - Flipkart

 

[harshilsharma63]

I go to brick-and-mortar shoe store, check the size and product material then order it online. Costs way way less online than in showrooms. Myntra will benefit from FK's superb delivery and return service. BTW is FK still running in loss?

 

[gopi_vbboy]

this sucks..

 

[Flash]

Myntra will work as a different website all together. It is only bought by fk but will not be merged into fk.

Exactly. Why people are worrying about this?
Their backends will be different, as it exists now and the entities will function separately.

Myntra's case is not like letsbuy.com

- - - Updated - - -

Exactly.
Presently,Whenever I want to buy something online it's either flipkart or amazon.Well I preffer flipkart more,But lately flipkart has killed itself by introducing third party sellers and also this 1 day delivery thing has affected normal delivery... delivered in 2-4 days has changed to 4+ days for all products

and that's the thing we've to worry about.

 

[$hadow]

Exactly. Why people are worrying about this?
Their backends will be different, as it exists now and the entities will function separately.

Myntra's case is not like letsbuy.com

- - - Updated - - -


and that's the thing we've to worry about.

Let's buy kinda lost its scope towards the end and hence ended in the hands of fk. Bit Myntra is a big fish though caught in the new by fk but changing its policies or anything will hit fk coz of the Myntra fanbase.