Research india publications flipkart-myntra from a merger to an acquisition farhat fatima periyar management and computer college, jasola, new delhi abstract the indian e-commerce market was worth 75,000 crore, in 2013, according to a joint report by kpmg and internet and mobile. The acquisition of myntra (india's largest fashion e-tailer) by flipkart (india's biggest e-tail company) brought together two of the biggest e-tailers in india made possible by common investors, the acquisition would enable myntra to leverage on flipkart's infrastructure, while allowing flipkart to strengthen its portfolio of. Introduction mergers and acquisitions speak to a definitive in change for a business no other source: iamai source world bank, iamai, aranca research source crisil 2014 flipkart flipkart is an e-business organization established in 2007 by sachin bansal and binny myntra funding in october 2007,. Flipkart, on tuesday, announced that it had acquired jabong, the country's second largest online fashion retailer, for an undisclosed amount the acquisition was done through myntra, the largest online fashion retailer that flipkart bought two years ago “fashion and lifestyle is one of the biggest drivers of. Study of ‗mergers & acquisitions' growth strategy in e-tailing industry (a case study of flipkart-myntra: the online giants) dr rajeshwari malik associate professor, msi (ggsipu), new delhi, india [email protected] india's internet ecosystem is going to be one of the most vibrant in the world in the future with.
The acquisition offers flipkart a more solid base to stay ahead of its rivals myntra will continue to operate independently – although the flipkart-myntra deal is a 100% takeover, there will be no immediate merger of the two companies mukesh bansal will be moving over to the board of directors of flipkart. The very next year flipkart acquired fashion ecommerce company myntra for $300 million it also bought a majority stake in jeeves, which provided maintenance, repairs and product guarantees the company also shut down payzippy in 2014 and acquired a mobile payment gateway company ngpay,. Read more about online fashion readies to face flipkart-myntra merger on business standard jabong, a rival to myntra, rules out any immediate merger or acquisition. Â€¢ to understand market position of flipkart and myntra before and after acquisition â€¢ to examine the share exchange ratio of the deal â€¢ to analyse the valuation of flipkart and myntra post acquisition â€ƒ literature review farhat fatima(2014) in her research paper from merger to an acquisition has discussed.
Before the acquisition, the myntra brand was way ahead of flipkart as the biggest india fashion e-tailer so this time around, it was a calibrated aggression on flipkart's part and the merger, along with the much-talked-about management autonomy enjoyed by mukesh bansal's myntra, will continue to work. For the reasons of why flipkart acquired myntra, please read my answer :- quora user's answer to why has flipkart acquired myntra but vc saw aggressive moves by amazoncom inc's india unit to carve out a larger market share in the country, they asked both companies to merge to stay as a more.
[post updated: flipkart & myntra officially announce the acquisition please see the update at flipmynt-merger-talks although, it has not been if you see above charts of funding, 2 investors stand out, who have lot of stake in both flipkart and myntra – tiger global and accel partners both the investors. Companies typically acquire or merge with rivals for a few common reasons, very few of which apply to the flipkart-ebay deal and the flipkart-snapdeal discussion acquire a brand flipkart's previous acquisitions of myntra and jabong seemed logical because they allowed flipkart to get majorly into. Both companies will be run independently, with no immediate plans to merge the fashion business on the two portals or even join forces in terms of content or flipkart co-founder sachin bansal insisted that this was a “completely different acquisition story” as it was not “driven by distress”, alluding to a. We have been hearing murmurs of a flipkart-myntra merger since january, but talks have been slow between the two online retail giants since then techcrunch reports based on information from sources within myntra that the board had started taking investor approval last month the deal would value.
The much awaited flipkart-myntra merger deal has significant bearing on the e- commerce landscape and startup ecosystem with the acquisition, flipkart becomes the largest e-commerce player by a fair margin in the country and gives it breathing space in a crowded market the two companies have. Respect snapdeal founders' move, talking to flipkart: softbank softbank ceo masayoshi son today said he respected the decision of snapdeal founders to call off merger talks with flipkart and the japanese firm is. Here's a look at the top mergers and acquisitions in india over the years after months of speculations, india's premier e-commerce startup flipkart acquired its fashion-focused rival myntra in may 2014, a move which was in light of amazon's expanding presence in india neither party confirmed the exact. Myntra, owned by flipkart recently acquired jabong for $ 70 million in cash from global fashion group (gfg) this came after gfg had received multiple bids in the past one year from firms like amazon, snapdeal, aditya birla group & future group now, let's look at what benefits flipkart & myntra will get.
Marking the biggest consolidation in the e-commerce space in india, homegrown e-retailer flipkart has acquired online fashion retailer myntra in an estimated rs 2,000 crore deal while the companies did not disclose the deal size, sources suggest the deal could be worth about rs 2,000 crore “it is a 100. Fashion is definitely the category of the future and we want to be the biggest players in this space, said sachin bansal, who co-founded flipkart with binny bansal this acquisition of myntra, involving a complicated share-swap process, also values flipkart at over $2 billion, possibly the first venture-funded. With reports of a possible acquisition of one of indias oldest e-commerce companies snapdeal by one of its biggest competitor flipkart we take a closer look talent implications of the such an acquisition in today's day and age.
Rahul chowdhry, director at venture firm helion, likes to compare it with amazon's acquisition of fashion portal zappos in 2009 for around $12 billion amazon could have built flipkart and myntra are very different companies, so not merging all processes makes sense for now however, it could lead to. At $330 mn, it's largest e-commerce acquisition in india myntra to stay independent to tackle online retail competitors like amazon, jabong both sets of bansals—sachin and binny at flipkart and especially mukesh at myntra— were clear that for a merger to make sense, myntra would need to be kept.
“myntra was addressing a very different customer segment than us for a horizontal platform, going deeper into certain segments didn't make sense hence, we acquired myntra, and it is one of the most successful mergers,” krishnamurthy said “myntra had a unique customer base than flipkart, they had. In india's biggest ever e-commerce deal, the country's largest online retailer, flipkart, has acquired the biggest fashion retailer online - myntra - in a de. Over the past few years, the indian e-commerce industry has seen a series of acquisitions, mergers, and shutdowns flipkart's in july this year, flipkart's acquisition of jabong at $70 million through its fashion arm myntra is the latest to reinforce the trend of consolidation in indian e-commerce space. Coming back to the original question, companies in the same business often acquire each other - its called a horizontal merger in an oligopolistic market structure (like the one in which flipkart, snapdeal and amazon operate), where competition is cut-throat, with frequent price and benefit wars, the.