After bombing Flipkart with raids and notices, now Enforcement Directorate is ready to pull the trigger at Myntra. According to an Economic Times report, the eCommerce retailer is under the scanner for reasons similar to Flipkart’s case.
Launched in 2007, Myntra started off as an online retailer and then switched to a marketplace model. Till date, the company has raised USD 125 million including the recent USD 50 million from Premji Invest.
The officials are busy in probing and deciding upon whether a show cause notice to be issued or not, reveals HT. Myntra, on the other hand, seems ready to handle all grievances.
Also Read: Is Flipkart really guilty?
It’s not for the first time that eCommerce space in India has come under surveillance. Last year, the founders of etailer Timtara were arrested under three cases registered against them by Economics Offence Wings and Janakpuri police station. Also, the warehouse of online marketplace Naaptol was raided by Legal Metrology Department in mid 2013.
Well, we are no longer stuck to ‘who is guilty’ part. However, with Indian eCommerce industry expected to reach USD 24 billion by 2015, it’s worth analysing, why this all came suddenly when both the companies are on top of their growth curves? Flipkart recently hit the USD 1 billion GMV while Myntra is poised to cross that mark soon.
If talked about the funding, than, it has been more than 6 years that they are in operation. Both have raised large sums of money in not only one but many rounds. Then, why these allegations were not made earlier?
Is this because our system has a habit of waking up late? Or the company’s management is so smart that it managed to evade ED? In case Myntra too is proven guilty for breaching the rules, will other players like Yebhi, Jabong and Snapdeal also have to suffer the similar fate?
To contact the author, email at email@example.com