* Flipkart to buy majority stake in Myntra - Myntra official
* Snapdeal raises $100 mln from investors - company official
* Indian online retail growing rapidly, Amazon expanding
By Nandita Bose
MUMBAI, May 21 With Amazon.com Inc
ramping up its presence in India, two local online retailers are
preparing for tougher competition with separate deals worth a
combined $400 million set to be finalised this week.
Flipkart, India's largest online retailer, is expected on
Thursday to announce its acquisition of a majority stake in
online fashion retailer Myntra in a deal worth about $300
million, said an official from Myntra who did not want to be
named as he was not authorised to speak with the media.
In a separate deal, local online retailer Snapdeal has
raised $100 million from five investors, a company official said
on Wednesday. The deal will be announced in a few days, he said.
The Snapdeal investors include Temasek Holdings, an
official with the Singapore state investor said.
The two deals come after Amazon, the world's biggest online
retailer, last year slashed prices and rolled-out next-day
delivery in a bid to win market share in India's fast-growing
"Amazon is scaling up .... much faster than expected and that
is forcing everyone from retailers to investors in these
companies to re-think," said Ashish Jhalani, founder of
e-tailing India, a retail consultancy.
"The sentiment here at the moment is about survival, it's
about now or never," he said.
Bangalore-based Flipkart, set up by two ex-Amazon employees
in 2007, has sought to grow its presence in the online fashion
segment, a category where Myntra is the market leader.
Tiger Global Management and Accel Partners are investors in
both Flipkart and Myntra.
Flipkart and Myntra declined to comment.
Snapdeal, an online marketplace that facilitates
transactions between third party suppliers and customers, is set
to complete its second round of funding this year by raising
$100 million, the company official said.
The official declined to be named and did not provide
details. Snapdeal Chief Executive Officer Kunal Bahl was not
immediately available for comment.
The Economic Times newspaper, citing an unnamed source,
reported on Tuesday that other investors in Snapdeal included
BlackRock Inc and Hong Kong-based Myriad Asset
Management. Myriad declined to comment and BlackRock did not
respond to a request for comment.
The Indian e-commerce market was worth $13 billion in 2013,
according to a joint report by KPMG and the Internet and Mobile
Association of India, with online travel accounting for over 70
percent of consumer e-commerce transactions last year.
Online sales of retail goods totaled $1.6 billion in 2013,
according to research firm Forrester, and are expected to reach
$76 billion by 2021, according to consultancy Technopak.
By comparison, China's business to consumer e-commerce sales
may surpass $180 billion this year, with industry leader Alibaba
IPO-ALIB.N readying an initial public offering (IPO) worth
more than $15 billion.
(Additional reporting by Saeed Azhar in SINGAPORE and Nishant
Kumar in HONG KONG; Editing by Sumeet Chatterjee, Tony Munroe
and Mark Potter)