Flipkart’s $100 million fashion business

Bengaluru: 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 per cent acquisition and going forward, we have big plans in this segment. Flipkart and Myntra are getting together to create one of the largest e-commerce stories and together we will dominate the market,” Flipkart co-founder and CEO Sachin Bansal said.

Asked about valuation, the companies declined to comment. “We, at Flipkart, believe that we want to be leaders in every segment and fashion is a category of the future, this acquisition will help us become leaders in this category,” he said.

Sachin said Flipkart will invest $100 million (around Rs 600 crore) in its fashion business in the near-term.

Flipkart, which started in 2007 as an online bookstore, sells products across categories, including fashion and electronics. The move is expected to help Flipkart strengthen its apparel portfolio and compete more aggressively with peers like Amazon and Snapdeal.