Fashion e-tailer Myntra, a part of e-commerce marketplace Flipkart, plans to acquire at least three companies this year as it transforms itself into a ‘mobile only’ company.
The Bengaluru-based company said it is on track to go fully mobile by the middle of this year as traffic coming from mobile is over 70 per cent at present from 10-13 per cent couple of years ago. In another six months, it is all set to grow over 90 per cent.
Shamik Das Sharma, Myntra's Chief Technology Officer (CTO), said that as the company was gearing up for creating a more consumer-friendly app, there are some technological problems such as sizing and fitting that need to be solved.
The company is looking at start-ups in sizing and fitting, data analytics, social crowdsourcing and visual recognition or technology start-ups that allow an app to be compatible on android wear such as watches and eyewear.
He, however, did not give any time frame or ticket size of these acquisitions.
However, sources said that the deal size could range between $20 million and $30 million.
Myntra, which was acquired by Flipkart in early 2014, has so far made two acquisitions — US-based firm Fitiquette and an Indian local brand Sher Singh.
Flipkart has also recently said that it has set aside $150 million for acquisitions to be made this year.
“We have an active programme through which we look at start-ups with whom we can partner and use their technology or may be to make acquisitions. It is always not possible to create all the technology in-house,” Sharma said. Besides, we are also looking for a few international players.
Sharma said inorganic growth will help in strengthening Myntra’s app as a strong engagement tool where consumers are compelled to use the app everyday and also to manage the traffic smoothly.
According to industry experts, as the e-commerce sector is maturing and evolving to mobile commerce, thousands of technology start-ups have mushroomed in the last few years which are innovating to provide exclusive features to provide better consumer experience over mobile.