Flipkart , the major online e-commerce portal acquire a majority stack on online fashion retailer Myntra in what could be the biggest consolidation in India's e-commerce sector.
The deal sources, could be worth about Rs. 2,000 crore. The transaction is likely to be announced on Thursday.
Myntra has sent invitations to the media for a conference in Bangalore today to announce a "strategic development" but did not divulge further details.
The stake acquisition details has been relieved for a few months from now, with the final details being worked out in the past few weeks.
"Flipkart representative told that they would be unable to comment on market speculation at this stage.
India's e-commerce market has seen huge growth in the past few years as more people log on to the Internet to shop max app based shopping.l
While apparel and electronics are bestsellers for most e-commerce firms, categories such as home decor and household items are also popular.
The industry, estimated to be worth about $3 billion (Rs. 17,700 crores approximately) currently, has firms such as Snapdeal, eBay and Amazon, which follow the marketplace model.
Flipkart started in 2007 as an online bookstore and now sells products across categories, including fashion and electronics. It now also sells white goods and furniture.
Led by increasing Internet penetration and youngsters shopping online, Flipkart's annualised sales crossed $1 billion (over Rs. 5,900 crore) a year ahead of target.
The company planned to reach the billion dollar mark for gross merchandise value by 2015.
It also operates under the marketplace model, which allows retailers to offer products on its platform.
Myntra sells products from over 650 brands like Nike, HRX by Hrithik Roshan, Biba and Steve Madden and clocked revenue of about Rs. 1,000 crore in the previous financial year.
It aims to double its revenue in this financial year as it expands its seller base and adds products.
Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscally.
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