Retail Highlights - May 2014
Contents
Flipkart Acquires Myntra for $300 Million
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Alibaba, ShopRunner Launch Joint China Service
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Unilever to Sell its Ragu and Bertolli Brands to Mizkan Group for $2.15 Billion
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MasterCard Acquires ElectraCard Services
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MySale Acquires Flash Sale Site Cocosa
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Flipkart Acquires Myntra for $300 Million
India’s largest online retailer Flipkart has bought fashion website Myntra (pronounced Mint-rah)
in a deal that is estimated to be close to $300 million to tackle global e-commerce leader
Amazon’s foray in India. Flipkart, has sought to grow its presence in the online fashion segment,
a category where Myntra is the market leader. Myntra CEO Mukesh Bansal joins Flipkart’s
board, and will head the fashion vertical at Flipkart and Myntra. Flipkart’s revenue crossed $1
billion in FY 2013-14 and Myntra's turnover was less than $120 million.
Since its inception in 2007, the Bangalore-based Flipkart founded by ex-Amazon employees in
2007 Sachin Bansal and Binny Bansal has raised over $500 million from investors including
Naspers, Tiger Global, Accel Partners, Dragoneer, Morgan Stanley, Sofina and Vulcan Capital.
Last year, it raised $360 million from private equity firms, one of the largest funding deals in the
Indian e-commerce space. Tiger Global Management and Accel Partners are investors in both
Flipkart and Myntra.
Alibaba, ShopRunner Launch Joint China Service
ShopRunner could be Alibaba’s Trojan horse (a "Trojan Horse" has come to mean any trick or
stratagem that causes a target to allow a foe into a securely protected bastion or space) in a
future challenge to Amazon because ShopRunner has never hesitated to positioning itself a
direct rival to Amazon Prime. Alibaba’s in October 2013 had picked up 39% stake in
ShopRunner for $206 million. ShopRunner founded in 2009 is based in King of Prussia,
Pennsylvania. ShopRunner is a subsidiary of Kynetic LLC.
About Alibaba Group
Alibaba founded in 1999 is the largest online and mobile commerce company in the world in terms of
gross merchandise volume. As per documents submitted by Alibaba with US Securities and
Exchange Commission, in 2013 Alibaba facilitated merchandise sales of about $248 billion by
delivering over 5 billion packages in 2013. Alibaba’s revenue is estimated to be about $8 billion in
2013. Alibaba’s enterprise is valued about $168 billion. Alibaba Group also provides payment and
escrow services on its marketplaces through Alipay.
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Unilever to Sell its Ragu and Bertolli brands to Mizkan Group for $2.15 billion
Unilever to Sell its pasta sauce btands Ragu and Bertolli to Mizkan Group for $2.15 billion. The
annual turnover for Ragu and Bertolli is more than $600 million.
About Mizkan
The Mizkan Group is a 210-year old privately held international food manufacturer, based in
Handa City, Japan. The products are marketed, under the "Mizkan" umbrella brand and is a
leader in the liquid condiment category
MasterCard Acquires ElectraCard Services
MasterCard has entered into an agreement with Opus Software Solutions Pvt. Ltd (“Opus”) to
acquire its subsidiary, ElectraCard Services Private Limited, (“ECS”). MasterCard previously had a
minority investment in ECS. MasterCard’s acquisition of ECS extends its product offerings and adds
to the company’s turnkey issuing processing, acquiring processing and switching solutions.
About ElectraCard Services
ECS, headquartered in Pune, India is a leading provider of software products and processing
services for electronic payments. Its customer base includes financial institutions, retailers and telcos
in over 25 countries globally. ECS’ suite of products enables customers to issue and manage all
types of payment cards and electronically process card transactions across multiple channels such
as ATM, POS, internet and mobile.
About MasterCard
MasterCard is a leading player in the global payments industry. It operates one of the most
secure and efficient payments processing network, connecting consumers, financial institutions,
merchants, governments and businesses in more than 200 countries.
MySale Acquires Flash Sale Site Cocosa
MySale, the Australian fashion sales site backed by Sir Philip Green who has a 25 per cent
stake, has acquired luxury flash sale site Cocosa. The deal provides MySale with a platform as
it prepares to launch in the UK. The site holds up to 60 flash sales a day. Egyptian business
tycoon Mohamed Al Fayed bought Cocosa in July 2011, a year after selling Harrods to Qatar
Holding for $2.22 billion. MySale established in 2007 is majority owned by UK-born Mr Jackson,
and his brother Carl. The group had sales of $150 million in the year to June 2013.
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