The Flipkart- Myntra merger we wrote about earlier was announced by the company today. About time! The deal was announced at a conference in Myntra’s office in Bangalore.
We wrote about a possible synergy between Flipkart and Myntra in November 2013! Sachin and Binny Bansal of Flipkart joined Mukesh Bansal on the stage to announce the deal.
UPDATE : Meet Sachin Bansal and Mukesh Bansal @UnPluggd, India’s Bigges Startup Conference!
Flipkart and Myntra are getting together to create one of the largest e-commerce companies in the country…We will invest over $100 mn in the near future in the fashion business.
The 100% acquisition of Myntra is likely to be the largest M&A in Indian ecommerce yet. None of them confirmed the deal terms. Mukesh joins Flipkart’s board and will head Flipkart and Myntra’s Fashion category, which is expected to be their largest category.
We will continue to run both entities independently because we want to preserve the culture at both places.
It is important for us to continue to run this as separate entities. I see myself here for many many years. We feel that this is an opportunity to accelerate our road map.
Here’s all you need to know about the deal.
- Flipkart & Myntra will operate as separate entities
Deal Value is upwards of $ 350 mn or Rs 2000 cr (This was not confirmed by the companies)
Who makes money?
- Mukesh Bansal & Ashutosh Lawania ~ Rs 430 cr
Top Management ~ Rs 6- 2Rs 25 cr
- Employees: Esops
How Much has Myntra raised so far?
February 2014: $50 mn from Premji Invest, Belgian Private equity firm Sofina and existing investors. At the time it was reportedly valued at $200 mn.
February 2012: $25 mn from Tiger Global, Accel Partners.
November 2010: $14 mn series B led by Accel Partners.
November 2008: $5 mn from NEA- IUV, IDG Ventures, Accel
Some Facts on Flipkart
- Registered Users: 18 mn
- Daily Visits: 3.5 mn
- 5 Million Shipments a month
- Sellers on platform: 3000
- Team strength: 10,000