After months of rumors, the merger between two of India’s biggest ecommerce companies, Flipkart and Myntra, has been completed, according to NextBigWhat.
Neither company has confirmed this officially. [UPDATE May 22, 2014 @17:15: Myntra confirmed the deal at a press event. Analysts say the deal is worth Rs 2000 crore (US$341 million).]
The two will keep operating as separate entities. Flipkart is the biggest general online marketplace in India, while Myntra is the biggest apparel-focused estore.
Myntra raised US$50 million from its latest funding round back in February. Techcrunch reported last month the deal values Myntra at US$330 million, but the acquisition was delayed due to some regulatory bottlenecks.
Last year, Flipkart raised India’s largest ecommerce funding round ever – US$360 million.
The two companies share common investors in Tiger Global, Accel Partners, and Sofina. Those investors might well have pushed the deal to prevent competition between the two and to avoid conflicts of interest later down the road.
We’ll update this post if either company make an official public confirmation.
(Source: NextBigWhat)Editing by Steven Millward