When Indian e-commerce leader Flipkart bought apparel site Myntra for nearly $300 million in 2014, their combined market share was estimated at over 50% of the overall apparel e-commerce market. By the time Myntra bought rival Jabong in 2016, the combined market share was somewhere between 60-70%. Since then, even the much-feared Amazon has failed to make a significant dent in Flipkart’s massive leadership in the space.
Which is why few VCs in India will write large cheques for apparel e-commerce startups. It’s just foolhardy to fund a frontal attack against Flipkart in the apparel space.
But what if there was a backdoor?