Let’s merge, Flipkart tells Myntra

BANGALORE/MUMBAI: Indian e-commerce biggie Flipkart has approached crosstown rival Myntra with a merger deal propelled by the larger, common investors behind the two Bangalore based e-tailers, people directly aware of the matter said. This development unfolded even as Myntra was sealing a $50-million (around Rs 300 crore) fund-raise from a consortium of investors led by PremjiInvest, first reported by TOI in its November 19 edition last year.

US hedge fund Tiger Global and venture capital firm Accel Partners are the two common investors, holding significant shares in Flipkart and online fashion specialist Myntra.

Myntra's co-founder Mukesh Bansal and smaller investors like IDG Ventures and Kalaari Capital prefer raising another round of funds rather than selling off the company right now. But a final decision will be taken within two weeks as Myntra founders and investors take a decision "most comfortable with everyone".