Indian retailers Flipkart and Myntra are reportedly in talks to merge.
In a move proposed by common investors Accel Partners and Tiger Global, the two are currently in talks to combine operations.
The merger would enable Flipkart to widen its product categories and help it achieve its goal of selling $1 billion gross merchandise value by next year.
“It’s still undecided. We are talking, and hoping to address the concerns of everyone. The Premji Invest-led consortium is also in final stages of discussions,” said a person close to the matter.
Flipkart raised $160 million last year, the largest ever by an Indian online retailer.
Myntra clocked $14 million sales last year and hopes to increase it to around $100 million this year.
“A deal between the two makes good business sense as it won’t be easy to surpass this combination in the domestic online fashion. But a merger may be loaded against the interest of Myntra’s founders who built an innovative and experiential brand with a distinct identity,” said Deepak Srinath of Allegro Capital.