With FEMA sword dangling on its head, Myntra is also keen on separating its ways from the long talked merger. As per a Wall Street journal report, the discussions have taken a halt and Mukesh Bansal (Myntra founder) is insisting on getting cash infusion for independent operations.
Myntra deal is an easy ticket for Flipkart to establish itself in the fashion space. Also, it will help company in annihilating the competition from foreign brands (like eBay and amazon) and add to its long term revenue.
However, there are not much benefits available on the Myntra side and to an extent, is a reason marking the delays in decision.
As per Medianama’s NTBalanarayan, the common investors in the firm, viz. Tiger Global Management and Accel Partners, are losing interest in the deal. Also, after the USD 50 million funding by Premji Invest, Mukesh is expecting a USD 150 million round to expand Myntra’s operations.
Well, it seems that Flipkart has to pay for its sins this time. But, what we are not sure of is whether it is really guilty for these or not? Will Flipkart’s ship will sunk against the rising competition and increasing government pressure? Will Myntra be able to maintain its independent ownership?
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