While the whole world is staying cautious and the word austerity is thrown in every other day, investors of the India’s eCom story seems to have not heard any of it. They just shoved a cool $25 million into Mytra’s pockets. Myntra is an Indian eTailer which started as a online custom gifting shop and later morphed into a lifestyle online store. This $25 million seems to be one of the bigger investments in the eCommerce space.
Myntra has raised $20 million in February this year, $14 million in November 2010 and $5 million before that. The latest round of $25 million is coming from Accel Partners and Tiger Global Management. The investor-duo has invested heavily into India’s eCom darling Flipkart not too long ago. This only suggests two things : The investors are extremely bullish on the Indian eCommerce story or they have something else in mind.
LetsBuy which seemed to be threatening Flipkart shared the same investors and before we realized it, Flipkart has bought LetsBuy. What went behind the scenes is not known but having the same investors does give us some insight. After LetsBuy, Myntra seems to be the shining star of India’s eCom story and a star which Flipkart is already taking notice. After all they share the investors.
Is there another mega-acquisition brewing?
We never know for sure but if it’s just a speculation why not make it large? When Flipkart bought Letsbuy their product portfolio overlapped a lot. There were no visible ‘synergies’ between the two. Flipkart bought it anyway. Flipkart later went into other verticals. Right now there isn’t much of anything which Flipkart doesn’t sell? Or is there? Sorry I was too fast. There is a certain category which Flipkart doesn’t sell and it is lifestyle products ( clothes, shoes and such like). Flipkart sells bags though.
Myntra sells something which Flipkart doesn’t.
That might be a coincidence and seems to be more compelling than LetsBuy. I wonder what the (common) investors are thinking. If it happens, I will not be doing a “I told you so” charade. If it doesn’t, I will file this under “media-speculation”.
Via | Images from Myntra.com