Flipkart M & A Case Study

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Flipkart took a bold move in the year 2014 by deciding to acquire Myantra and creating an entity with annualized sales worth $ 1.5 billion. This has brought the company in a much better position to compete with well-established offline retailers in the Indian market like Aditya Birla, Reliance as well as the Future Group. The combined worth of both these companies has even brought them in strong position to challenge the big global giant Amazon which has in the past few years become a very aggressive and competitive player in the hugely booming Indian E-tailing market. This is the biggest M&A deal in in India's e-commerce story to date and was heavily influenced by the two large common shareholders of both these companies, Accel Partners and …show more content…

The acquisition has also ramped up things for Flipkart and goals they could have achieved in five to six years earlier would be possible to do in the next two to three years with the help of Myntra. In the last few years Myntra has helped take online fashion to an entirely different level by being biggest leaders with a very unique differentiation factor. The company has largely focused on building deep relations with the brands that they have tied up with and have successfully made some major brands their household …show more content…

The fashion industry in India has been diversified since the beginning and thus it is very difficult for one single portal to cater to the needs of the consumers here. There is ample amount of scope for multiple players to differentiate and grow in this market. The market has been evolving with time and in the longer run the entire competition will be limited to a few palters but there will no doubt be immense scope for innovation from newer startups. Looking at the fashion business for Flipkart it has been known for providing the best price and best selection for all its products whereas Myntra has been offering the best value proposition for its consumers in the same segment. The category is still an emerging one and looking at the long term perspective one has to understand that products here can be sold both

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