Presented By: ANKIT KUMAR GUPTA

Facts• 100% Acquisition by Flipkart

• Rs.2,000 Crore Valuation of Myntra

• Deal took place on 21 May, 2014

• Largest Ecommerce Deal in Indian History

• Myntra’s Founder will join Flipkart’s Board

Myntra + Flipkart• Flipkart’s 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.• Myntra’s Reason To have a stronger distribution network. To foray into the mobile platform To increase warehouse capacity by 4 times

• Myntra has started offering 30-40% discount after the infusion.

• Simple Strategy – Combine to two entities -> get a market share a 50% -> keeping the functionality separate, take it to 60%

Myntra Flipkart

No. of registered users 8million 18million

No. of products on stock 60,000 10 million books

Annualized revenues 1,200crores(approx.) 3,355crores(approx.)

Myntra attained 45% of market share in fashion lines.The combination added 600 brands making effective sales 1.5billionUSD

FLIPKART – MYNTRA THE GAME CHANGER

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.

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.

Myntra30%

Flipkart20%

Others50%

Market Share

Myntra

Flipcart

Others

65%

35%Market Share

Flipkart+Myntra Other's

FILTER CRITERIA

MARKET SEGMENT

FLIPKARTElectronics,

books

MYNTRA

Apparel (>50%)

Deal was an added vertical to

the line of business

Apparel business expected to grow from 3 billion to 50 billion hence a prospective sector of business

SYNERGY

Cost optimization – by using common resources

as they have common vendors

Operational synergy – by increasing market share

and becoming more dominant

Increasing sales – through cross selling, up selling i.e. selling apparel higher profit margin

Flipkart merger – a growth merger for Myntra

Launch of first online personalized style service, more brands under private

labels and foraying into premium designer collection

-> Myntra to adopt Flipkart‘s Operational model - Marketplace Model in order to overcome:

• No need for Warehousing

• No shipping Costs

• Increased Profit Margins

• Expand its reach to new customer.

-> The biggest Competitor – Snapdeal, which is backed by ebay.

-> Discourages the growth pace of Jabong.

-> Walmart’s entry into the indian e -market is imminent.

-> It squares off against “Amazon” for dominance of India's fast-growing online retail market.