Updated: Confirmed, Myntra Raises $50 Mln From Premji Invest
Update: 6th Feb 2014:
Finally we have an official confirmation from Myntra on the investment. Press Release sent to us by Myntra has confirmed that they have raised $50 million Round Of Financing Led By Premji Invest. Funds will be used to drive business growth and strengthen core technology and product offerings.
Mukesh Bansal, Co-Founder and CEO, Myntra said “The key to our success has been a robust business model and a customer centric approach that has resulted in Myntra.com emerging as the ultimate fashion destination for shoppers across India. We have been growing steadily, increasing our product offerings and attracting new users from different corners of the country. This round of funding will allow us to scale up, attract and retain superior talent, ramp up our technology infrastructure and strengthen the Myntra brand. We are confident of achieving $1 billion GMV (Gross Merchandise Value) by 2016 and will be by far the largest fashion destination in India.”
Update: 31st Jan 2014: Finally, it looks like all the rumours and news flying thick and fast are put to rest. ToI is reporting that Myntra has opted for growth and have accepted Premji Invest offer. The deal is pegged at about $50 million which will give Myntra a valuation of $160 million. The offer is expected to be announced soon.
Only time will tell whether Myntra has done the right thing by not merging. As we are not privy of any details of Flipkart offer, it is difficult to say what aspect derailed the merger talks.
Not merging could work in both ways, either positive or negative for both the companies. The Amazon threat is far too big and only time will tell whether Flipkart and Myntra will be able overcome it.
Very interesting times ahead in Indian E-Commerce space for sure!
The rumours are flying thick and fast in regards to Flipkart and Myntra merger. Most major media publications, including Times of India is reporting that Flipkart has approached Myntra with the merger offer citing sources directly related to the deal.
This news comes close to heels of rumored $50 million investment by Premji Invest. As we reported yesterday, Myntra was reconsidering the deal, as they may been approached with some better offer. Probably, the Flipkart’s offer must be it!
Whatever said and done, these are currently at rumours stage and both the sides have not given any inkling about it.
But if you talk about synergies, definitely the merger looks good on paper. The biggest factor in this rumored merger are the two common investors in Myntra and Flipkart; Tiger Global and Accel Partners. Both the investors combined own 53 percent in Myntra and around 40% in Flipkart.
Flipkart has been eyeing private label acquisitions like Zovi and YepMe for quite some time now. Apparel is a high margin business and Flipkart, while very successful in other categories wants to create a foothold in it. They have already launched their own private label apparel brand “Flippd” few days back to kickstart things. That may also be because, if they are unable to acquire significant players in private label market and at the same time if Myntra merger does not go through, they push Flippd to the masses.
Giving details, ToI reported that offer is basically an acquisition that involves keeping Myntra as separate unit and the existing management running the show.
Flipkart understands that Amazon is taking giant strides in Indian ecommerce market, and if Myntra comes into fold, it will give them a huge heads-up in increasingly maturing Indian ecommerce market.
The merger may take upto 2 weeks to get finalized. We will need to wait and watch if the deal actually goes through or not.
Would love to know what our readers think of this possible merger between these 2 biggies in Indian ecommerce space!