Flipkart, online e-commerce portal acquired fashion portal Myntra on Thursday. Bangalore based Myntra was established by four IIT alumni, Mukesh Bansal, Ashutosh Lawania, Imran Khan and Vineet Saxena - in February 2007. Tiger Global Management and Accel Partners are investors in both Flipkart and Myntra. E-Commerce companies like Flipkart & Myntra are, on an average, growing at 40-45 per cent annually, Reports, PTI.

The acquisition will help Flipkart to gain significant upper-hand in the fashion and accessory segment. According to sources, the transaction was valued at close to $300 million, or nearly Rs. 1,800 crore, but the Financial details of the deal were not disclosed yet by both the companies.

This partnership will strengthen both our positions in the fashion space. We will continue to work as independent entities and grow together as leaders in the Indian fashion and lifestyle industry,” said Flipkart’s co-founder Binny Bansal.

                                                                           

Flipkart will also invest $100 million, around Rs 600 crore in its fashion business in the near-term, said Sachin Bansal.

According to a joint report by KPMG and the Internet and Mobile Association of India, the e-commerce market in India was worth $13 billion, or nearly Rs. 75,000 crore, in 2013. Online sale of retail goods was wroth $1.6 billion, or nearly Rs. 10,000 crore, in 2013, according to research firm Forrester.

The Flipkart and Myntra deal come out soon after Amazon enters into the Indian market.