Myntra has today announced the acquisition of private label brand, Shersingh and also, the parent company, Exclusively.in.
With this acquisition, Sher Singh’s senior management team along with its employees will be absorbed into Myntra. Myntra will lean on Sher Singh’s fashion and design expertise to strengthen its private label and presence in the US market. The retailer will also maintain Sher Singh’s New York design studio to tap into the latest trends from one of the world’s leading fashion capitals.
Exclusively.in Funding recap:
- Nov 2010: Raised $2.8mn from Accel and Helion
- May 2011: Raised $16mn from Accel Partners and Helion Partners
- Brand Shersingh had investors like Zaheer Khan.
Myntra Funding recap:
- Raised seed round from Accel Partners and Mumbai Angels in 2007.
- Nov 2008: Raised $5mn Series A round from NEA-IndoUS Ventures, IDG Ventures and Accel Partners.
- Nov 2011: Raised $14mn in Series B (led by Tiger Global).
- Dec 2011: Raised $20mn led by Tiger Global with participation from Accel Partners etc.
That is, both had common investors – i.e. Tiger Global and Accel Partners (which incidentally also were common investors in Flipkart and LetsBuy).
From what it seems like, Exclusively.in had an insignificant traffic to the site (we do understand that Alexa cannot be trusted as-is, but it gives a decent stats for relative traffic ranking). Even shersingh traffic isn’t much to talk about.
In May 2011, Exclusively raised $16mn at a valuation of $60mn (post money). Given how ecommerce businesses have been valued in 2010 and 2011 (i.e. irrespective of current sales revenue), I won’t be surprised that the company faced severe hurdles in raising the next round. In fact, there were rumors of company shutting down in Feb 2012:
Exclusively.in, backed by the same investors (Accel, Tiger and Helion), has sacked several employees and is up for sale.The founders of the fashion flash sales site are now focusing their resources on their private label portal, SherSingh.com. “Currently we are running Exclusively.in but we are focusing on our private label business which requires less human capital”.
Moreover, Myntra has been working hard to launch its private label (is partnering with Bollywood celebrities) and Exclusively team does bring an expertise worth paying for.
Was this deal forced by investors? OR by choice? For whatever it is worth, shersingh needs to prove that it’s a sher in this private label business.
What’s your opinion?