Flipkart and Myntra, among the largest e-commerce retailers in India, are reportedly in merger discussions. The consolidation is part of a proposal being pushed by the two firms' common investors Tiger Global and Accel Partners, according to TechCrunch.
Flipkart has already given fashion retailer Myntra its offer, the Times of India reported earlier today. The paper also Myntra would give its decision on whether to accept the bid in a couple of weeks, the report detailed.
Bangalore-based Flipkart has been aiming for expansion in new categories like fashion retail, co-founder Binny Bansal said recently. The proposed merger with Myntra can help the e-commerce giant gain an additional category and further widen the gap with all of its rivals. The online shopping site wants to hit the $1-billion mark in gross merchandise value by 2015. To date, Flipkart has raised $540 million in funding from its investors, the report explained.
Myntra is one of the biggest online clothing and shoe seller in India. The company has entered discussions with various investors to raise about $50 million in funding, according to sources. These talks included a proposal to consolidate with Flipkart or buy another e-commerce firm to achieve a certain size. The source, however, said there has been no final decision yet, TechCrunch reported.
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