Flipkart's acquisition of Myntra has finally become official, and several employees of the latter - a company worth over ₹2,000 crore - are in a jubilant mood as they are bound to get a good slice from the deal.
While there has been several reports about a merger between the two e-commerce companies for sometime now, top executives Flipkart and Myntra made the news official on Thursday.
Interestingly, it's not just the top executives who are bound to gain from the acquistion. Several low rung employees who were given stock options will also benefit from the buyout.
Myntra has an estimated net value of over ₹2,000 crore, and the buyout will help the employees make a fortune through their stock options.
According to Economic Times, several top executives, such as Myntra's chief operating officer Ganesh Subramanian, chief technology and product officer Shamik Sharma and head of human resources Pooja Gupta and chief marketing officer Vikas Ahuja are estimated to make at least ₹23 crore through their share in the company.
The business daily also reported that over 500 Myntra employees, working in technology and call center and delivery staff, have received stock options and will benefit from the acquisition. While both Flipkart and Myntra have been quiet about the exact figures of the acquisition, it is estimated that the deal has to be more than ₹ 2000 crore.
In a press conference held in the IT capital of the country, Myntra co-founder Mukesh Bansal said that the acquisition will help Myntra partner with Flipkart, to become a leading fashion powerhouse.
"We are excited to partner with Flipkart, the biggest e-commerce platform in India. Sachin, Binny and their team have built a pioneering e-commerce platform on a foundation of strong technology and customer centricity. Flipkart is the most powerful e-commerce brand in India and has a very ambitious agenda to build the next generation of retail in India. Leveraging mutual strengths, we will build Myntra into India's leading fashion powerhouse and create many original fashion brands," said Bansal, co-founder and CEO of Myntra.
Highlights of Flipkart's Myntra acquisition:
- Flipkart and Myntra will operate as separate entities
- Acquisition Deal is estimated to be over ₹2000 crore
- Myntra CEO and COOs will make estimated ₹450 crore
- Mytra Top Management is bound to gain anywhere till ₹23 crore
- Employees: Returns per respective employee stock ownership plan