Online fashion moghul Myntra on Monday announced that it has acquired Witworks for undisclosed amount. The deal marks Myntra’s first acquisition in 2018, following its sole acquisition of 20Dresses last year. Following the acquisition, Witworks team will get absorbed into Myntra.
Since Myntra hasn’t disclosed financial details of the Witworks’ deal, some reports are suggesting that this may be an acquihire and not a genuine acquisition. Both companies have declined to comment on these speculative reports.
Myntra, which is currently owned by Flipkart, enjoys strong affinity for acquisitions. Even before it got acquired by Flipkart, it had acquired quite a few promising startups. Till date the company has acquired 8 startups, which mostly deal in fashion and apparels.
What will Myntra achieve with Witworks acquisition?
The latest acquisition will help the online fashion startup to create range of smart wearable products like smart shoes, smart watches etc. Besides, the company can leverage Witworks’ technology and software by integrating them into their apparel and other fashion products.
Commenting on the acquisition, Jeyandran Venugopal (Chief Technology Officer, Myantra) stated that the latest acquisition will help the company to further cement their place in the smart wearable segment and launch cutting-edge wearable products in the market. Venugopal claimed that India’s wearable industry at present worth approximately $46 Mn (INR 300 Cr) and online shopping contributes nearly 60% of revenue to this business.
Witworks – smart-works by three IIT students
Witworks is a result of the brainstorming of three IIT alumni’s – Somnath Meher, Ankit DP and Chandrashekhar Iyer. The fruition of this brainstorming came in 2014, which is actually when these three IIT alumni’s incorporated the company. The biggest moment for this young startup came in 2016, when it launched the smart watch Blink in the market. The startup also engages in creating software for wearable devices.
The last few years have witnessed unprecedented proliferation of internet and technology, resulting in startups like Witworks that solely work towards integrating cutting edge products into our everyday use products like clothes, shoes watches etc.
Most experts claim that smart wearable market is still a very niche market but is set to grow in a rapid pace in years to come.