 "Flipkart-Myntra merger buzz just got louder, courtesy Mukesh Bansal")
The latest development in the on-again-off-again merger talks between Indian e-commerce websites Flipkart and Myntra took a turn today as Myntra CEO Mukesh Bansal expressed his acceptance of a strategic investment,
according to
The__Times of India. An announcement to this effect is expected this month.
In the interview with_ToI,_Bansal broke down the elements that would make an investor idea -
•$100-150 million infusion into Myntra over the next two years.
• Support Myntra’s brand strategies (The website has enterprising plans for its private labels - itwill have 13 private brands across the fashion and accessories categories with _ToI_reporting thatRoadster clocking a sales run rate of Rs 100 crore while Dressberry registering Rs 50 crore.)
• Allow Myntra to function as an autonomous entity.
“I’m open to the idea of a strategic (investor) if the DNA is similar, and the investor has a deep technology know-how with a vision to grow Myntra over the next 5-10 years,” Bansal is quoted saying in the article.
While tipping a hat to Flipkart’s logistical strengths, Bansal alluded to consolidation probably being the best bet to win big in India’s e-commerce market. He, however, did not explicitly name Flipkart.
_Firstbiz_had earlier reported investor pressure as one of the reasons for a possible coming together of Flipkart and Myntra. The resultant company will give international players like Amazon and eBay fierce competition in India’s thriving e-commerce segment.
