Neither Flipkart nor Myntra confirmed it but sources close to the deal, in the works for months, said the agreement had been sealed and only signatures were left to be done.
The details are not known but Myntra could be valued at $300 million (Rs 1,800 crore) at least, say sources.
The two companies have been negotiating to remain separate entities after a merger.
This will be the country’s first major consolidation in e-commerce, a market estimated at $2 billion (Rs 12,000 crore) of the organised retail pie of $40 bn (Rs 2.4 lakh crore) and a total sector size of $600 bn (Rs 36 lakh crore).
E-commerce could cross $20 bn a year in India over the next three to four years, say analysts.
Flipkart and Myntra, both based in Bengaluru, expect to together give competition to Amazon, the American online retailer that is yet to complete a year in this country.
Flipkart just hit $1 billion (Rs 6,000 crore) in gross merchandise value.
In a recent interview to Business Standard, Myntra’s chief executive, Mukesh Bansal, said his company, an online fashion entity, was targeting a GMV or annual revenue of Rs 20,000 crore (Rs 200 billion) by 2020, up from Rs 1,200 crore (Rs 12 billion) now.
With Flipkart big in electronics and books, a pact with Myntra is likely to grow its fashion business and market share.
The overall fashion business in India is estimated at $60 bn (Rs 3.6 lakh crore),
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