Indian-based Flipkart owned e-tailer Myntra.com has recently acquired Native5 Software Solutions Pvt Ltd, a mobile-tech startup functioning at Bangalore. The financial terms of the deal were not disclosed.
Founded in 2011, the company was developed by Manish Priyasarshi, Barada Sahu and Shamik Datta. Microsoft Accelerator acted as incubator for the company in 2013 and in the same year, it was took part in Nasscom 10,000 Startup programme. It was also one among the finalists of Qualcomm’s QPrize in 2012.
Recently, the Flipkart acquired company had a strategy shift of moving entirely to mobile platform of fashion portal from usual web-based online fashion portal. Considering the 90% of its customer traffic is through the mobile platform through which the company reached the annual target, the company made the step to move to mobile-only presence. Also study on the people browsing internet through phone by KPMG says the number has jumped 33% in 2014 and is expected to increase 21% every year till 2019. This serves as the basis why companies are moving towards mobile app and giving more importance to them. This may also be the reason why the company acquired the mobile app-engaging platform.
Prasad Kompalli, the head of e-commerce platform of Myntra said, “Mobile for us is more than just another channel. We believe our value proposition is best delivered and experienced through our mobile app. This medium allows s to redefine fashion shopping by offering deep personalized experiences in discovery, content consumption and transactions.”
Some people close to the company even consider that acquisition of Native5 may be an ‘acqui-hire.’ By acqui-hire it means, a company buys a company to hire its intellectual resources rather than the products or the business prospects of the company. According to the deal, the three founders and five other members in the team will join the technology team of the company. But sources say that one of the co-founder Priyadarshi would not be joining Myntra and is likely to continue in the startup called Ecosystem.
When asked the company about the acquisition of Native5, Pooja Gupta, VP human resource at Myntra said, “We are always on the look-out to acquire companies that can add value to our business- howeverm we are very particular that the entity/business being considered makes not just business sense but ties in with our culture and value proposition.”
This is not the first acquisition of Myntra. It has previously acquired Exclusively in 2012, Fitiquette in 2013 and Shersing, which makes Native5 their fourth company to be acquired.