Update: In a press statement, Flipkart said that along with being the CEO of Myntra, Mukesh Bansal will head the fashion business for Flipkart and join the board.
“We believe that the future of fashion in India is e-commerce. We have known Mukesh for a long time and are delighted to partner with him. Myntra has a strong team with excellent domain knowledge. They also have the best relationships with lifestyle brands. This partnership will strengthen both our positions in the fashion space. We will continue to work as independent entities and grow together as leaders in the Indian fashion and lifestyle industry.”
Flipkart co-founders Sachin Bansal and Binny Bansal
Speaking on the deal, Mukesh Bansal said:
“We are excited to partner with Flipkart, the biggest e-commerce platform in India. Sachin, Binny and their team have built a pioneering e-commerce platform on a foundation of strong technology and customer centricity. Flipkart is the most powerful e-commerce brand in India and has a very ambitious agenda to build the next generation of retail in India. Leveraging mutual strengths, we will build Myntra into India’s leading fashion powerhouse and create many original fashion brands.”
Earlier: It’s done. Flipkart, the Tiger Global and Accel Partners backed ecommerce heavyweight has acquired rival Myntra. The formal announcement, which follows months of intense speculation across media, came at a press conference in Bangalore today where both the companies are headquartered.
The financial details of the transaction have not been disclosed.
The acquisition gives Flipkart a leading edge in the fashion ecommerce market in which Myntra is a category leader with a reported 30 per cent market share.
The two companies will continue to operate as independent entities, for now. Myntra founder Mukesh Bansal is slated to join the Flipkart board and will lead the merged entity’s fashion ecommerce business. Flipkart is also expected to invest $100 million in the Myntra post acquisition — this was one of Mukesh Bansal’s key pre-conditions for the merger.
What others are reporting on the deal of the year:
- It’s official. Flipkart owns 100% of Myntra (Source: BusinessLine)
- Flipkart buys Myntra in biggest ecommerce deal (Source: Livemint)
- Flipkart acquires Myntra, to invest $100 mn in fashion business (Source: Reuters)
- Flipkart buys Myntra; Mukesh Bansal to join Flipkart board (Source: Medianama)
- Two dozen top executives at Myntra to be millionaires post Flipkart deal (Source: The Economic Times)