Update: Myntra has also acquired Exclusively.in, the parent company of Sher Singh. According to the company the acquisition will allow it to expand operations internationally. Exclusively.in started as a flash sales site but pivoted to a standard e-commerce model offering designer apparel and accessories. It ships products only to the US and UK. We’ll update this post with more details shortly.
Myntra.com, the fashion and lifestyle products focused e-commerce company, has acquired SherSingh.com,
the global private label online brand which offers sports-inspired lifestyle apparel for men and women. The
exact value of the transaction has not been disclosed but it was a cash cum equity deal, according to a statement from the company. Following this acquisition, the Sher Singh brand of products will now be exclusively sold on myntra.com and shersingh.com.
Sher Singh’s senior management team along with its employees will also be absorbed into Myntra and will contribute towards strengthening Myntra’s private label portfolio, the company informed. Myntra will also leverage Sher Singh’s fashion and design experience to strengthen its private label and presence in the US market, and will also maintain Sher Singh’s New York design studio.
Sher Singh was launched in 2011 by Exclusively.in Inc, an ethnic wear focused e-commerce portal (www.Exclusively.in) targeting the US and UK markets but also ships to India. The company has offices in New Delhi and New York. Last year, cricketer Zaheer Khan had invested in fashion brand ‘Sher Singh’. Another cricketer, Yuvraj Singh, had invested in parent company, Exclusively.in.
We’ve been witnessing a number of mergers and acquisitions in ecommerce within the same segment, signifying consolidation within the industry. Interestingly, both companies have common investors in Tiger Global Management, Accel Partners India. So just like the Flipkart-LetsBuy deal (the same common investors were involved!), the acquisition makes sense for them as well. Myntra was eager to start its own private label and had made some progress on it. Private labels offer better sales margin. So following the transaction, it would get access to a niche private label, and access to the US market (in a limited manner mostly to Non Resident Indians). Myntra retails branded apparel in India, but its major focus is not on high-end designer wear, unlike Exclusively.in, which pivoted from a flash sales site to an e-commerce store, last year.
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– Myntra Raises $5 Million From NEA-IUV, IDG Ventures and Accel
– Exclusively.in Pivots: Moves From Flash Sales To E-Commerce
– Exclusively.in Raises $16M; Starts UK Operations
– Luxury Commerce Site Exclusively.in Raises $2.8 M From Accel, Helion: Report