Flipkart buys Myntra in order to boost their business and stay ahead in the growing e-com business in India. The Flipkart-Myntra deal amounted to $300 million.
Flipkart buys Myntra
Flipkart is the largest online retailer in India. The acquisition of Myntra will give them the advantage to make headways in the fashion arm in India. It is a growing prospect and will likely be advantageous for Flipkart.
The mega Indian retailer Flipkart buys Myntra for a sum of around $300 million. This was exposed by an individual who is close to the deal. However, it cannot be said to be an official figure as the financial terms were not officially out.
Amazon has a solid consolidation of their share in the online market in India too. The acquisition of Myntra by Flipkart is also seen as a move to counter the growing business of Amazon in India.
“This acquisition helps us grab a bigger market share and compete better,” said Binny Bansal, who is the co-founder of Flipkart. Binny Bansal is also a former employee of Amazon who went on to co-found Flipkart in the year 2007.
Amazon’s entry into India
Amazon’s entry into India will complete 12 months in June. However, in this short period of time, Amazon has made their presence felt. They have come up with strategies like slashing the prices of the products, adding various categories for products and most importantly, next-day delivery.
There are also smaller e-com companies in India. However, with stalwarts like Amazon and Flipkart to battle, things will not be easy for them. Merging with such rivals will be the only way out for them, practically. Also, engaging themselves in the price war will also not be easy for them.
Even Amazon is keeping an eye on acquiring any possible small start-ups so that like Flipkart, they too can develop their business and stronghold in the Indian market.