Summary
India’s e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop.
In what is being termed as the biggest consolidation in India’s e-commerce sector, homegrown e-retailer Flipkart on Thursday acquired a majority stake in online fashion retailer Myntra.
According to sources, the deal is worth about Rs 2,000 crore.
The stake acquisition has been in the works for a few months now, with the final details being worked out in the past few weeks.
India’s e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop.
The industry, estimated to be worth about $3 billion currently, has firms such as Snapdeal, eBay and Amazon, which follow the marketplace model.
Flipkart started in 2007 as an online bookstore and now sells products across categories, including fashion and electronics. It now also sells white goods and furniture. Led by increasing Internet penetration and youngsters shopping online, Flipkart’s annualised sales crossed $1 billion (over Rs 6,100 crore) a year ahead of target.
The company planned to reach the billion dollar mark for gross merchandise value by 2015.
It also operates under the marketplace model, which allows retailers to offer products on its platform.
Myntra sells products from over 650 brands like Nike, HRX by Hrithik Roshan, Biba and Steve Madden and clocked revenue of about Rs 1,000 crore in the previous financial year.
It aims to double its revenue in this financial year as it expands its seller base and adds products. Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end.
(With PTI inputs)
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