Flipkart buys Myntra to take on Amazon challenge

BANGALORE, INDIA: In one of the biggest consolidations in India's e-commerce sector, Flipkart is likely to acquire a majority stake in popular online fashion retailer Myntra .

According a PTI report quoting sources, the deal could be worth about Rs. 2,000 crore. The figure could not be independently verified.

Myntra has sent invitations to the media for a conference in Bangalore on Thursday to announce a "strategic development" without divulging further details.According to reports the proposed deal was agreed upon in principle by early April, but the companies and their investors took "a while" to work out a deal structure that would be in compliance with Indian laws.

The deal is stated to be first proposed by two common investors at Flipkart and Myntra, Tiger Global Management and Accel Partners, in response to aggressive moves by Amazon.com Inc.'s India unit to carve out a larger market share in the country.

Flipkart's co-founders Sachin Bansal and Binny Bansal, and Myntra co-founder and chief executive Mukesh Bansal approved the deal earlier this year, people with direct knowledge of the talks said earlier in May.