Exclusively.in, a site that sells designer brands,
as one of the country's largest online retailers
looks to strengthen its fashion business to take
on rivals Flipkart-owned Myntra and Jabong
amid a consolidation drive.
Two people familiar with the deal said Snapdeal
is expected to take over Exclusively as part of
its acquisition plans following the October
funding of $627 million raised from Japanese
telecom and internet giant Softbank.
The deal has been the works for months and is
likely to come through as Exclusively founder
Sunjay Guleria has agreed to the valuation,
said one of the persons. ET couldn't confirm
how much Snapdeal is likely to pay for the
business.
Guleria declined to comment as did a Snapdeal
spokesperson. Guleria had sold the Sher Singh
apparel brand along with co-founders in 2012 to
Myntra.
While India's rapidly e-commerce sector is
dominated by companies such as market leader
Flipkart, Amazon and Snapdeal, among others,
it also comprises smaller and specialty online
sellers, many of which may be looking to exit as
funding dries up for them. Earlier this month,
Mahindra Group acquired baby products online
retailer Babyoye.com.
Snapdeal has created one of India's largest
online marketplaces but the company is playing
catchup with online fashion leaders such as
Myntra and Jabong in that space.
The company plans to use Exclusively to shore
up its fashion offerings besides extending it to
offer global bridge-to-luxury and even luxury
brands, said one of the persons cited above.
The stakes are high for fashion as the segment
is turning out to be the fastest-growing
segment for online retailers. Last year,
Flipkart acquired Myntra as part of its fashion
push.
Even Amazon, a relatively late starter in
fashion and lifestyle, is making a concerted
effort to build its fashion portfolio. It's
planning its own line of private labels for
apparel and other lifestyle products, making
India perhaps the first country in which the US
e-commerce giant will do so.
In December, Snapdeal acquired gift
recommendation site Wishpicker for an
undisclosed amount as its first buyout after
raising money from Softbank. Last year,
Flipkart raised $1.9 billion from its investors,
valuing the company at $11 billion. Amazon said
last year it would invest $2 billion in the India
business.
On Saturday, ET reported that Snapdeal is in
talks with investors to raise another $400
million that would possibly value the company at
$5 billion.
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