Flipkart, India’s biggest e-commerce company, acquired fast growing online fashion retailer Myntra, the two companies confirmed today. Financial terms of the deal were not disclosed but Reuters has said the transaction was valued at close to $300 million.
Sachin Bansal, co-founder of Bangalore-based Flipkart, “Going forward we have big plans in this segment,” he said. Myntra’s CEO, Mukesh Bansal, will continue to head up the fashion site, which will remain operating as an independent entity from Flipkart. However, it will also now be headed of the fashion business for Flipkart, and also joins the board. The acquisition is couched as a “partnership” in the joint press release.
The deal comes likely in response to Amazon increasingly becoming a competitor to watch out for in India. As well, the US e-commerce juggernaut quietly moved into the Indian market last June. First, they started out selling books only, but now offer music, electronics, movies, fashion and more.
eBay also has plans for the Indian market. Flipkart buying Myntra is a way for it to defend itself agains the rise of other ecommerce giants in the region. Amazon there is also Snapdeal, which just yesterday raised another $100 million, bringing its total raised to more than $400 million.
Flipkart is now offering over 15 million products with over 18 million registered users and 3.5 million daily visitors to its site. Myntra has more than 50 million visits every month.