Myntra’s valuation remained flat at around $130 million, in the latest fundraise but the firm is expected to post sales of about $100 million in fiscal 2014. It believes that a sale would undermine its valuation.  Reports were doing the rounds that Myntra wanted to raise its capital and one way to do it is by merging with Flipkart.

Meanwhile, Myntra is trying to raise $50-million from PremjiInvest and discussions are in their final stages. "A deal between the two makes good business sense as it won't be easy to surpass this combination in the domestic online fashion. But a merger may be loaded against the interest of Myntra's founders who built an innovative and experiential brand with a distinct identity," said Deepak Srinath of Allegro Capital, who advises internet startups on fund-raising. A decision that is, "most comfortable with everyone" will be taken in a couple of weeks, reports Boby Kurian and Samidha Sharma for The Times of India. Now, they can merge and create a strong entity to become market leaders for the $3.1 billion Indian e-commerce market. That will put competitors like Jabong, Amazon and Snapdeal in a tight spot.