BANGALORE: The Indian e-tailer giants Flipkart and Myntra are on the last round of discussions to acquire the latter. The deal is expected to be closed by the end of April. Sources close to the matter revealed that the online fashion brand Myntra, is looking forward for a validation estimated at $400 million as reported by Economic Times.

Even though neither Flipkart nor Mynta spokespersons were available for direct comment the agencies educated on the discussions said that the target valuation of $350 million can be raised to $370 million, however can never be quoted at $400 million. Based in Bangalore, Flipkart was founded by Sachin Bansal in 2007. Myntra also has its head office in Bangalore and was established in 2007 by Mukesh Bansal. Mukesh Bansal is anticipated to independently lead the entire fashion wing of Myntra and Flipkart after the acquisition.

Amazon, which recently entered into the Indian e-commerce sector, has been making progress in proportion with the increasing online shoppers in the country. The merger is expected to boost the leadership of Flipkart which is expected to nail the $8.5 billion mark by 2016. Reports also say that Flipkart has promised to cash in $100 million to Myntra, which will help the firm attain its objective of becoming Rs 20,000-crore Fashion Company by 2020.

"This will help Myntra take on competition like Jabong and other fashion sites. And by joining hands, both will be able to take on Amazon, which is the major driving force in these talks," said a consultant who works close with the deal. Both the e-commerce sites share common investors Accel, Tiger and Sofina, with Myntra including additional two more.
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