Citing a person with direct knowledge on the transaction, the report states that Fashion and You paid Urban Touch in cash and stocks and Abhishek Goyal, Founder and Chief Executive Officer, Urban Touch will take over as the chief executive officer of Fashion and You. However, it notes that Harish Bahl, founder of Smile Group has declined to confirm the financial details of this acquisition.
MediaNama had earlier reported about the possible acquisition of Urban Touch by Fashion and You based on discussion (now cancelled post) on Therodinhoods, a discussion portal run by Alok Kejriwal.
CEO search for Fashion And You: Fashion And You had been looking for a CEO since its co-founder Pearl Uppal left in June this year, shortly after her husband, Gaurav Kachru, quit as the CEO of another Smile Group company Deals And You. Pearl Uppal however continues to be a shareholder in the company.
The acquisition will provide an exit for Urban Touch’s investors – Tiger Global and Accel Partners who invested over Rs 20 crore in the company. Urban Touch Co-Founder and now CEO of Fashion and You, informed the publication that both the portals will continue to operate as two distinct websites but will have cross linkages. Urban Touch’s over 200 employees will join the 750-member Fashion and You team. Urban Touch’s leadership team will hold stock in the combined entity.
Fashion And You, a flash sales site, has raised $8 Million From Sequoia Capital India in 2010 and $40 million (Rs 202.3 crore approx.) in a funding round led by Norwest Venture Partners and Intel Capital, with participation from Sequoia Capital India and Nokia Growth Partners in November 2011. The portal is backed by Group Buying Global AG and Smile Interactive founder Harish Bahl. On
eCommerce acquisitions & Results
We could easily call 2012 as the year for consolidation in the Indian eCommerce market. However, many have chosen to shut down the operations after acquisition. Recently, Hushbabies.com, a baby care product company which is run by Lapis Marketing Pvt Ltd, acquired MangoStreet.com, an eStore for kids’ product to shut it down. Similarly, Flipkart closed down Letsbuy.com, the electronics and gadgets focused ecommerce store, just three months after the acquisition. Snapdeal.com shut down Esportsbuy.com an eCommerce company just two months after the acquisition. Flipkart and Snapdeal integrated some of Letsbuy and Esportsbuy’s products respectively into its own catalog.
It needs to be seen how Fashion and You’s acquisition of Urban Touch turns out to be.