 "We have got a fair valuation: Mukesh Bansal")
Myntra sees its merger with rival Flipkart as a chance to become a leader in the fashion business. In a conference call after the deal was announced, Mukesh Bansal, chief executive and co-founder, said more synergies would be identified with the latter. Edited excerpts:
Was it a tough call to sell out to Flipkart? Was the deal brokered under investors’ pressure?
Flipkart initiated the discussion. The common investors mostly stayed out of the negotiations, since there was a conflict of interest. We have got a fair valuation. I cannot share the numbers but I see this merger as an opportunity to grow as leaders in fashion category. With Flipkart’s expertise in supply chain and technology and Myntra’s knowledge of fashion, it’s an alliance that will benefit both. The merger will accelerate our growth and help us reach our targets much earlier. Myntra would emerge stronger.
There is no conflict in business model, in the way both are legally structured. We use the same pattern to run our companies. Since both will continue to run independently, I don’t see any conflict at the level of operations, too. There would be sharing of knowledge and technology but as of now, the teams won’t be integrated.
You’ll be managing the forthcoming $100-million investment in the fashion segment. What next?
There are more in-house fashion brands we are developing. We are also roping in more international brands to sell exclusively with us. In 12-18 months, fashion will be one of the largest categories for the company. About 80 per cent of e-commerce shoppers have either bought from Flipkart or Myntra. Through this consolidation, we bring together a huge pool of consumers.
What are the biggest benefits for Myntra in this deal?
We continue independently as a brand. Flipkart, specialising in technology and consumer experience, can drive Myntra’s growth in fashion. There will be integration in logistics. Through our collaboration team, we will identify more areas for synergy and co-operation at the back-end.
Was it a tough call to sell out to Flipkart? Was the deal brokered under investors’ pressure?
Flipkart initiated the discussion. The common investors mostly stayed out of the negotiations, since there was a conflict of interest. We have got a fair valuation. I cannot share the numbers but I see this merger as an opportunity to grow as leaders in fashion category. With Flipkart’s expertise in supply chain and technology and Myntra’s knowledge of fashion, it’s an alliance that will benefit both. The merger will accelerate our growth and help us reach our targets much earlier. Myntra would emerge stronger.
More From This Section
Does your business model conflict with Flipkart’s? Flipkart is moving to a marketplace model, while Myntra is still using an inventory-led one.
There is no conflict in business model, in the way both are legally structured. We use the same pattern to run our companies. Since both will continue to run independently, I don’t see any conflict at the level of operations, too. There would be sharing of knowledge and technology but as of now, the teams won’t be integrated.
You’ll be managing the forthcoming $100-million investment in the fashion segment. What next?
There are more in-house fashion brands we are developing. We are also roping in more international brands to sell exclusively with us. In 12-18 months, fashion will be one of the largest categories for the company. About 80 per cent of e-commerce shoppers have either bought from Flipkart or Myntra. Through this consolidation, we bring together a huge pool of consumers.
What are the biggest benefits for Myntra in this deal?
We continue independently as a brand. Flipkart, specialising in technology and consumer experience, can drive Myntra’s growth in fashion. There will be integration in logistics. Through our collaboration team, we will identify more areas for synergy and co-operation at the back-end.