Here's finally the news we have all been waiting for. According to reports, India's largest e-commerce company Flipkart has finalized the acquisition of Bangalore-based online fashion retailer Myntra, as revelaed via official sources.
With the new deal now in place, Myntra founder Mukesh Bansal will join the Flipkart board, although both the companies will remain independent. The new move from Flipkart is also said to be a response to aggressive moves adopted by Amazon Inc that are creating problems for local retailers.
"While the exact deal size could not be ascertained, a few reports have pegged it at Rs. 1,800-2,000 crore, making it the largest in the space since South Africa's Naspers, which has a stake in Flipkart, bought RedBus for Rs. 780 crore last year," a report from The Hindu BusinessLine states.
Moreover, reports are also claiming that Flipkart will invest around $100 million in the fashion business, with Flipkart's co-founder Sachin Bansal already stating that "its a 100 percent acquisition and going forward we have big plans in this segment."
However, it is not yet clear if Flipkart will look to acquire only the Myntra brand or its overall operations. "'I cannot share further details but Myntra will continue to run as a separate entity,' said a company official."
Apart from that, as the report adds, a statement from Flipkart has also maintained that it will not comment on market speculations.