Flipkart and Myntra are close to a deal which could either be an acquisition by India's largest online retailer or a partnership between the two companies. "The companies are in talks for a commercial partnership, but an acquisition is also on the table," said a person with direct knowledge of the discussions. "All options are being explored." The two companies have three common investors — early stage investor Accel Partners, hedge fund Tiger Global and Belgium-based family office Sofina.
Accel and Tiger have been pushing for a merger for a few months according to several people with knowledge of the developments. However, Myntra's founders have not been too keen to conclude an outright acquisition. "They will prefer a financial investment where they can operate as a separate entity," said a person, who has worked as a consultant with Flipkart and Myntra.
Between a merger with Flipkart and a new round of funding led by Wipro chairman Azim Premji's family office Premji Invest, Myntra opted for the money in February. The company raised $50 million (aboutRs 300 crore) at a valuation of about $200 million (about Rs 1,200 crore). At the time of the investment, Bansal had refuted reports of a possible merger with Flipkart saying the two companies followed different models.
However, he had conceded there was merit in exploring ways to work together and take on competition. Amazon, which has rapidly built a presence in India since June last year, is expected to start selling apparel later this month.
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