Monday, November 19, 2012

Ecommerce venture Myntra acquires SherSingh and Exclusively

In another sign of consolidation in India's fast-growing ecommerce  industry, online fashion retailer Myntra has acquired online private label retailer Sher Singh and, which target the non-resident Indian market, in a cash-and-stock deal. 

Myntra's founder and CEO Mukesh Bansal confirmed the news, but declined to reveal the financial details. 

"We have been working on a private label initiative within Myntra and wanted a team with strong design and inventory and Sher Singh has done that really well. It made sense to acquire the team," said Bansal. 
Sunjay Guleria, co-founder of Sher Singh and Exclusively, will move to Myntra with his 40-strong team. Bansal confirmed that Guleria will now lead Myntra's private label initiative and will also lead some of the venture's marketing initiatives. 

Guleria said the acquisition will leverage already existing synergies between the two brands. "This allows SherSingh to target a much broader audience." 

This is Myntra's first acquisition. Myntra and Sher Singh have common investors in Accel Partners and Tiger Global. 

Myntra had raised over $20 million (Rs 108 crore) in venture funding earlier this year from existing investorsTiger Global and Accel Partners. Its other investors include IndoUS Venture Partners and IDG Ventures India. 

SherSingh and Exclusively had raised around $16 million from Helion Veture Partners, Accel Partners, Tiger Global and Indian cricketer Zaheer Khan. 

"The investors remain invested," said Bansal.

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