Flipkart Acquires Fashion E-Retailer Myntra.com : Deal likely to announce on 22nd May, 2014

Image Courtesy: IndianNerve

India’s e-commerce sector may see its biggest consolidation with online fashion store Myntra likely to announce a merger and acquisition deal with its cross-town rival Flipkart on Thursday. Myntra has sent out a press invitation for the announcement of a strategic development at the company on Thursday, but did not divulge further details.

The merger between the companies has been in the works for a few months now, with the last few weeks seeing hectic parleys over Myntra’s autonomy post the deal. It is understood that stakeholders have ironed out differences over the autonomy issue.

The exact price is uncertain though - is it said to be somewhere 300 to 330 Mn USD. This merger will help Accel Partners and Tiger Global Management who own major shares in both the companies to streamline their focus in one single direction. It is also possible that other shareholders might liquidate their shares and walk out of the merger, though no official confirmations have been made.

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