The Flipkart Myntra merger, a.k.a the biggest deal in the Indian e-commerce Industry, was closed last month.
As a platform, NextBigWhat has tracked the journey of both Flipkart & Myntra over the years. And we had to have them talk to our audience at UnPluggd, India’s biggest startup conference.
Bansalidation of Indian Ecommerce
In many ways, the two companies and the Bansals are shaping the future of the industry which is expected to be over $ 70 bn in size by 2020. We’d written about the deal in detail earlier but nothing better than hearing it from the founders themselves.
Those who were at UnPluggd, got a chance to hear it live and then have some questions answered. For those who couldn’t make it, here’s the video.
Here are a few key takeaways.
On dominating Fashion
The combined Flipkart group now has more than 50% market share in the fashion category. Traditionally, most horizontal players have been weak in fashion. That changes now. Flipkart will be able to take pretty large positions on inventory together with brands. They will do what they did with Moto-e with fashion brands as well. “We exceeded all of Motorola’s projections,” points out Sachin.
Fundraising & IPO
The combined entity becomes much more attractive for fundraising. That puts them in a stronger position. “We should be able to take significant amount of funds from the markets, public or private,” says Sachin. After acquiring Myntra, Flipkart has raised $210 million investment led by DST Global (Yuri Milner’s fund).
“Combined, we will redefine how retail happens in India,” says Mukesh.
None of the shareholders are in a hurry to go public. Most shareholders are eager to continue and improve their holdings in Flipkart. “We are thinking 10 years or more. IPO will be a milestone in the middle. We want to be a public company but not in the near future for sure,” said Sachin.
The 3-way Battle (a.k.a Mafia)
Largely, the space has gotten into a 3 way battle between Amazon, Ebay (+Snapdeal) and Flipkart. The three players have significant amount of money to play with. “We are no where close to the market potential. There is a lot of room,” says Sachin. Future depends a lot on who is able to innovate and predict those trends in the horizontal e-commerce. “Western models of eBay or Amazon are not right for India as well. We are more like China,” he added.