We live in an era where business prevails in almost everywhere, whether you’re an owner of a small-scale shop or an owner of a large-scale start-up.
We all are familiar to the story of big-developed companies buying & acquiring start-ups to give it a name of its own? This story is very similar to it only that it involves the first Indian company to reach $100 billion market capitalization – Reliance Industries Limited. (RIL)
The company ranked 203rd on the Fortune Global 500 list of the world’s biggest corporations as of 2017.
What is the latest news?
According to sources, there has been information regarding talks between Mukesh Ambani-led Reliance Industry Limited and fashion e-commerce platform Fynd. As per sources, the RIL has been involved in a negotiation to acquire Fynd, for about one and a half month.
Sources also added that the probable structure of the deal has also been finalized by both the firms and on the lines of acquisition of Edtech start-up Embibe, RIL may acquire over 70 percent of Fynd. However, it could be a complete acquisition also.
Why is the deal important?
The deal will help RIL in its entry in consumer Internet space with this acquisition. The company is expected to start-off its e-commerce operations by April-May this year.
The company ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016 and today it is getting buckled up to take on Amazon and Walmart, and disrupt the e-commerce market and is slated to touch $84 billion value by 2021.
What is the reply from Fynd?
Fynd which lets fashion and lifestyle brands sell online was backed by Google and had raised over ₹100 crore on its name from over 50 investors including IIFL, Kae Capital, Patni and Axis Capital amongst many others. While the information is yet to be confirmed and the deal value needs to be ascertained, Fynd co-founder Harsh Shah said that the company is not looking to get acquired at all.
“There are many people, financial investors and strategically who have shown interest in investing in Fynd but there are not strong conversations going on and none of them are for an acquisition,” said Shah. RIL has not yet responded anything to the information. This will be RIL’s fourth acquisition in the start-up world, though he has acquired stakes in Embibe, EasyGov, Reverie Technology, and Sankhya Sutra Labs.
None of the firms have confirmed its legitimacy but looking through the business perspective, the deal is important to both the parties. We expect positive responses in the months to come.