Well, it was just a talk of yesterday when I read the news about the current on-goings related to Giants like You-tube acquiring the Twitch. And here is one major acquisition happening around the corner. But this time it is Indian brands into the picture.
The Indian e-commerce market is supposed to have made the biggest move in terms of acquiring a company. Yes, the online fashion retailer Flipkart is going to tie bond with another online retailer Mukesh Bansal – CEO of Myntra and is going to trigger the exact deal soon i.e. as early as this month.
Over this deal TOI has jotted down after having a chat with Mukesh that “an investor who would pump in $100-150 million into the Bangalore-based company over the next two years, push Myntra’s aggressive private brands strategy and let the e-tailer function as an autonomous entity may be a welcome suitor. I’m open to the idea of a strategic (investor) if the DNA is similar, and the investor has a deep technology know-how with a vision to grow Myntra over the next 5-10 years,””
the buzz about this acquisition is supposed to have been in the air since January i.e. Flipkart is on the verge of acquiring a company, a giant which is its own rival in terms.
till now it is been said that not only this but other e-commerce players like venture funds Accel Partners and Tiger Global are wanting to have Flipkart eat this piece of cake. On the contrary i.e. the inventors of Myntra, IDG Ventures and Kalaari Capital are still having second thoughts over this deal with flipkart.
Sources say since past few weeks Myntra’s management team is very efficiently working with a great team of investors who have helped Myntra figure out great and strategic move it could possibly make by signing up to this agreement with flipkart.
Mukesh made a point by saying that Flipkart has got a totally giant domain to work with accompanied by its cash on delivery services, building its own logistics pillar to execute a working model and an efficient technological backbone thereby making it one of the magnanimous e-commercial market. Yet the battles between Amazon, Snapdeal and Flipkart are like cut-throat wars.
Myntra is expecting a major move and growth in terms of the company’s turnover by making a clock slaes of Rs 20000 crore by the 2020 from Rs 800 crore.
Myntra is focused to take the growth in terms of some multi million dollars private brands in the coming years. By this year’s end, it will hold 13 private brands in the fashion and accessories along with Roadster’s clocking sales of Rs 100 crore and Dressberry registering Rs 50 crore.
Flipkart’s statistics of last month hits $1 billion sales, marking it to be one of the significant milestone it has ever achieved. One of the other reason of Flipkart to have ended up acquiring Myntra is that the acquisition time that is the current time is when the global giant of online retailer Amazon has opened a war and tough competitive grounds in the Indian markets. This makes it more interesting.
Myntra which was founded by the IITians Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena in 2007, raised $50 million in January this year and its funding is led by the IT major Wipro’s founder Azim Premji’s family office PremjiInvest.
Myntra has been embarking a substantial and a potential growth of a venture which started as a business model of a shopping portal offering some personalized gifting services to a gigantic fashion online retailer.
A fresh report by the Accel Partners says that Indian markets are booming with the e-commerce market and is expecting to touch the edges of $8.5 billion by 2016 with fashion and accessories alone grabbing the sales of over $2.8 billion over the next three years from $550 million currently.