India's two power companies discuss mergers and Myntra will remain independent

Flipkart and Myntra, India's two biggest electricity companies, are discussing the merger, February 10 News. According to the information, Myntra will operate as an independent unit after the merger of Flipkart and Myntra.

According to the Times of India, the merger was driven by their mutual investment, Tiger and Accel. Tiger and Accel, who hold 53% per cent of the two appliance companies, want to work together to boost Flipkart's fashion business. It is understood that Tiger and Accel hold a 40% stake in Flipkart.

Flipkart, which specializes in books and electronic products, received a total of 360 million dollars in investment last year, mainly by Morgan Stanley Investment Corp. And Myntra is mainly engaged in fashion apparel and jewelry, currently a total of 50 million U.S. dollars in financing. By merging with Flipkart, Flipkart can expand its fashion business.

Next year Flipkart expects to reach 1 billion dollars in sales. In view of the increasingly fierce competition in the Indian electricity market, Flipkart's cooperation with Myntra is a sensible move. There are still a lot of competitors in India's electricity market, including Amazon, India and Snapdeal.

CLSA, an investment bank based in Hong Kong, expects India's 3.1 billion dollar market to grow more space than its 200 billion-dollar online market, which is expected to grow 7 times times in five years to a level of 22 billion dollars.