TechCrunch April 9, 2014
India’s biggest e-commerce company, Flipkart, is in the final stages of completing a merger deal with the country’s fast growing online fashion retailer Myntra, in what could potentially create a much stronger entity for fending off aggressive rivals Amazon, Walmart and the eBay-backed Snapdeal.
At least three people directly familiar with ongoing talks said the Myntra board started taking investors’ approvals for the sale in March. The deal values Myntra at around $330 million. Flipkart has been valued at around $2.5 billion in this transaction, according to one of the persons.
“Flipkart is registered in Singapore and Myntra is completely based here — that’s creating some delays and complexities around jurisdiction, etc,” one of the people said. “Some entities are also registered in Mauritius, adding to the delays in making this transaction happen early.”
He added that it could take another month at best before all the formalities are over.
“Unless the process runs into a rough weather because of some regulatory, legal bottlenecks, it’s a done deal,” the person added.
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