Why did Myntra agree to be acquired by Flipkart?

Before the acquisition took place, Myntra’s market share was only 30 percent of
the online fashion sales, but after being acquired by Flipkart, its market share
jumped to 50 percent in a market that was clocking around 100 percent annualized
growth. Both the entities benefitted from the acquisition as Flipkart acquired a
market leader in the online fashion space while Myntra’s sales were bolstered by
the capital infused into it by Flipkart. Flipkart took advantage of the fact that
Myntra was undervalued and cash strapped thereby acquiring it at a competitive
price. The infusion of capital by Flipkart was essential for Myntra since it was
going through a cash burn phase and needed additional funds to survive. Myntra’s
other alternatives like going public did not materialize as it realized that being
acquired was a more feasible option.
1. 6. To study of employment opportunity of Indian

customer.
Pre -Merger Value Df Both Firms + Synergy k
---------= Pre - Merger 5toc
Price
Post -Merger Nun1ber of Shares
2.1 :
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of India’s GDP, while the share of telecommunication services in India’s GDP is
expected to increase to 15 percent by 2015. With enabling support, the e-
commerce industry too can contribute much more to the GDP. The projected
growth of e-tailing in India will successfully address all the above challenges. The
cost of distribution will reduce because the multilayered distribution system will
be replaced by an order fulfillment process arranged in a hub and spoke model.
The layers of distributors will not be required here as this role will be fulfilled by
warehousing and logistics operations which offer margin enhancement
opportunities for manufacturers and better prices for consumers.