BANGALORE: "Flipkart-Myntra makes a great combination especially from the investors’ perspective. It readies an ‘Indian answer’ to the massive growth companies like Amazon could see in India if FDI in ecommerce is allowed. Such mergers are a global trend and India is likely to see a great ecommerce story in the next few years," said Swati Bhargava- Cashkaro.com

The merger was followed keeping in mind the competition against multinational companies like Amazon, which launched in India in June last year. Amazon India, which is off late been growing fast, and adding several new categories is strongly looking ahead in the e-commerce industry. Amit Agarwal, Vice President and Country Manager Amazon India said, "We don't get distracted by the competition," as the company has 20 years of global experience.

Flipkart recently came out with another move that seemed to be a response to Amazon, in which it announced Flipkart First. An annual subscription service for shoppers that would offer free one-day delivery, priority customer service, free shipping and 60 day returns instead of the normal 30 day returns. This was very similar to Amazon's Prime program, which the company has not launched in India yet.

However, these moves showed that Flipkart is working hard to stay competitive, and the reported merger with Myntra would make sense for the same reason, as the two companies have some complementary offerings despite a lot of overlap.

With these developments, it makes sense for Flipkart and Myntra to shore each other up, but the details of the merger will be closely looked because the details are not known whether it is essentially going to be an acquisition with Flipkart taking control, or whether Mytra will remain as a separate unit.

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