One of the most talked about acquisitions in the Indian E-Com world has finally gone through as Flipkart has acquired the fashion retail giants Myntra in a deal that is reportedly worth Rs 2,200 crore. We first heard about the acquisition back in January this year, though both the companies had then played down any news of a potential takeover then.
However, it was after the insisting of a couple of common investors in the two companies as late as March that the deal gathered pace and was finally announced today. No clear value of the deal was announced nor the mode of payment was made public, however, an educated guess would be that the payment would be made in terms of stock options and cash.
However, it was made clear that Flipkart was acquiring complete 100% of Myntra in order to help it expand in the fashion space, but the two companies will continue to function independently and no change in employee status will happen at least in the near future. Sachin Bansal, the CEO of Flipkart did mention though that he has plans to invest over $100 million in Myntra in the near future to help continue its growth. As a result of this deal, the CEO of Myntra, Mr Mukesh Bansal would now be indicted in the Board Members of Flipkart. The move will allow Flipkart to take on the likes of Ebay and AMazon more aggressively in the future as together with Myntra it will acquire for a volume share of about 50% in the ecom fashion retail space.