Myntra’s CEO has reportedly hinted towards a possible acquisition by Flipkart. Myntra’s co-founder and CEO Mukesh Bansal has said that the company is eyeing for an investor, who would invest the desired money as well as help the company function as an autonomous entity even after the deal happens, ToI reports. Though Bansal has not mentioned anything about the prospective investors, he has hinted towards the company’s possible acquisition with Flipkart.
The company is open to get into a strategic partnership with an investor who can invest $100-150 million in to the company over the next two years. “I’m open to the idea of a strategic (investor) if the DNA is similar, and the investor has a deep technology know-how with a vision to grow Myntra over the next 5-10 years,” Bansal told the publication.
Company insiders have told the publication that it was due to the clash of interest of the Myntra’s investors in FlipKart, that this buyout deal took so long to be finalized. So while two of the companies’ common investors namely Accel Partners and Tiger Global were pushing the deal to happen, smaller investors including IDG Ventures and Kalaari Capital in Myntra were not interested. However, the investors and the management team of Myntra have now taken a mutually agreeable decision and are likely to make an announcement in this month.
Myntra is aiming to achieve Rs 20,000 crore in sales (gross merchandise value) by 2020, up from its current Rs 800 crore, and is working on building multiple hundred million-dollar private brands in the coming years. Flipkart on the other hand is the leader in the e-commerce space in India and had recently announced achieving $1 billion in sales.
Reportedly, Myntra wants to have an independent structure and would like to retain its team even after the acquisition. Also, Bansal, who holds around 9 percent of the company’s share, is likely to stay on with his shareholding in the company.