Flipkart today announced it has acquired Myntra, a rival online retailer that focuses on fashion. The company said it had acquired 100 percent stake in Myntra though it didn’t reveal the deal size. Earlier reports have suggested the acquisition to be in excess of $300 million.
Myntra says it will continue to operate as an independent entity post the closing of the acquisition. Myntra CEO, Mukesh Bansal would join Flipkart’s board. Flipkart also announced it will be investing to the tune of $100 million in Myntra’s business in the future.
Myntra’s acquisition by Flipkart has been speculated for a few months now. Both online retailers have two common investors — Tiger Global Management and Accel Partners — who had suggested the two companies come together to take on Amazon, which recently entered India as a marketplace. Amazon is currently lobbying in the US to push the Indian government to relax FDI norms in retail.