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Started Sept 5 2007

Founders- Sachin and


Binny Bansal.

Payment methods: COD

Revenue $11.8 billion

Established -2007

Owners- Mukesh Bansal,
Ashutosh Lawania, Vineet Saxena.

Turn Over 800 Crore


Flipkart acquires Myntra in
Indias largest e-commerce deal

Flipkart India Pvt Ltd, the countrys largest e-commerce
firm, on Thursday 22
nd
May 2014 acquired rival Myntra.com
in the largest-ever deal in the countrys e-commerce market.
The two Bangalore-based companies merger amount,
analysts estimates suggest the cash-and-stock deal is likely to
value online fashion retailer Myntra at more than $330
million.
The deal also comes at a time when the department of
industrial policy and promotion (DIPP) has made a strong
push for foreign direct investment (FDI) in e-commerce as
part of its agenda for the new government. The current
policy does not allow FDI in business-to-consumer e-
commerce even as 100 per cent FDI is allowed in business-
to-business e-commerce.
The acquisition is likely to give Flipkart, not just a stronger
foothold in the fast-growing online fashion market, but also
the additional scale it needs to fight competitors such as
Amazon.
This acquisition helps Flipkart grab a bigger market share
and compete better.

Myntra co-founder and chief executive Mukesh Bansal will
head the fashion business of both Myntra and Flipkart, and
Myntra will operate as an independent entity and retain its
website, while Flipkart will continue selling apparel on its site.
Tiger Global and Accel Partners first proposed the deal last
year.
Mutual Synergy
Technology at Flipkart and market
leadership of Myntra in order to accelerate
our growth.
BIG DEAL.
BIGGER REASONS.
BUSINESS MINDS!!!!!!!!!!
COST OF ACQUISITION
COMPETITION COMES
CALLING
PROFITABILITY TARGETS
ENTER INTO NEW
BUSINESS
Cost Of Acquisition And Economies
Of Scale - By joining forces, Flipkart and
Myntra would realize huge cost savings on
customer acquisition as they basically target the
same customer and demographic base.
Combined company would control the major E-
Commerce of India resulting in significant
economies of scales.
Competition Amazon, with its
well oiled machinery, is ready to fight
against all players of E-Commerce in
India which both Flipkart and
Myntra would better be able to face
as a combined entity.

GAME
OVER
EFFECT
Profitability targets
Accel Partners and Tiger Global are
investors to both Flipkart and Myntra. Their
merger would concentrate the investments
from both the companies, helping them to
reach revenue and profitability targets much
quicker.

Pants into new business
Apparel segment is one of the most
profitable segments in e-commerce
industry with profit margin varying from
20-50%. Flipkart would take advantage of
Myntra being the strongest player in this
industry, for its own growth and profits.
Facts of Flipkart Myntra acquisition
Its a 100% acquisition. The current investors in Myntra remain
so and theres no exit taking place.
Myntra continues to function as an independent entity and so
does the fashion division of Flipkart.
Only Mukesh Bansal from Myntra joins the Flipkart board.
Hell head the fashion business for Flipkart.
All the Myntra employees get the universal stock options.
Facts of Flipkart Myntra acquisition
$100 million to be invested in Flipkart fashion business in
coming years.
Together, Flipkart and Myntra will have over 50% share in
the online fashion market in India (Myntras current share is
~30%).
There are no immediate plans of integrating the duo but the
possibilities will be explored in near future.
Facts of Flipkart Myntra acquisition
There are enough funds with Flipkart to sustain for long,
hence there are no immediate plans for next round of
funding.
Flipkart is definitely eyeing for an IPO but not the priority as
of now.
Flipkart plans to go Alibaba way rather than the Amazon
way due to more similarities in between Indian and Chinese
consumers.
Facts of Flipkart Myntra acquisition
Theres no threat to Myntras online fashion dominance by
Amazon.
Flipkart aims to grow its fashion/apparel business to an
extent that it accounts to 30% of their revenue shares.
Key stakeholders in Myntra have become millionaires with
this deal.
Myntra continues to hire and expand. Have global ambitions
as well.


Myntra + Flipkart
Flipkarts Reason
Wanted apparel products
specialization, deeper
understanding of fashion,
aesthetic presentation and
experience.
Fashion products to become
the most popular category in
the near future.

Myntras Reason
To have a stronger distribution
network with the present ratio
being at 70:250
To foray into the mobile
platform
To increase warehouse capacity
by 4 times
CHALLENGES
Benefits


-> Flipkart and Myntra together create
the largest e-commerce stories and
together will dominate the market.




-> online fashion market share
Myntra 30% & Flipkart 20%
at present.





Myntra
30%
Flipcart
20%
Others
50%
Market Share
Myntra
Flipcart
Others
FLIPKART MYNTRA
THE GAME CHANGER
65%
35%
Market Share
Flipkart+
Myntra
Other's

-> Become leaders in the category of
Fashion.


-> Flipkarts earned 4-5% by electronics &
phones category, F&A will generate double
digit margins.


-> 65% market share - online fashion
segment by December 2015.


-> Myntra to adopt Flipkarts Operational model
- Marketplace Model in order to overcome:



No need for Warehousing

No shipping Costs

Increased Profit Margins

Expand its reach to new customer.



-> India's e-commerce market has seen huge growth in the past few years as
more people log on to the Internet to shop. FlipMynt also needs to overcome
the threat of small online retail markets.



BUSY
LIFESTYL
ES
INCREAS
E IN
DISPOSAB
L-E
INCOME
CoD
FACILITY
TIE-UPS
WITH
INTERNA
TI-ONAL
BRANDS
RISE OF
TIER II
CITIES
WHY WILL IT GROW?
Thank You