'Myntra & Flipkart well positioned to take on any foreign rival'

After working for four startups in the Silicon Valley, when 37-year old Mukesh Bansal moved to India in 2007, to start online fashion retailer Myntra Designs, there were few internet users and recruitment for startups was a challenge. In seven years, India has seen a sea change, says the IIT-Kanpur alumnus. In an exclusive interview, Bansal, outlines Myntra’s new strategy after its merger with Flipkart and the latest billion dollar fund-raise:
Will the fashion retail teams at Myntra and Flipkart now see a consolidation?
Never.Post merger we have a clarity that the businesses have to be executed independently and preserve a different culture. Independently we see both Myntra and Flipkart's fashion category as billion dollar businesses each in 2-3 years.
While Myntra’s fashion offering continues to be more on the premium side. Flipkart offers an array of discounted fashion brands.
Our goal at Flipkart is to win the horizontal battle while at Myntra we are striving to win the vertical battle. Teams will remain different for both.
Flipkart’s fashion catalogue will be much larger and it will allow other sellers to sell their wares. Myntra will be lot more inventory based and will focus on creating a look for consumers.
Should the new government allow 100% FDI in e-commerce as advocated by Amazon and Walmart?
Between Myntra and Flipkart, we are in a position (with the new investments), that we can take on any big foreign entrant. But the next 10 entrepreneurs in India’s e-commerce industry may not stand a chance if a dozen foreign entrants are allowed to set up shop. For any emerging country, the government should give some time for for the indigenous companies to emerge. China has allowed its homegrown internet companies to prosper. Similarly we advocate a policy in India that should encourage its domestic entrepreneurs.
Has your vision for Myntra changed after its acquisition by Flipkart and latest funding?
At Myntra, we have started to think long term as now (with large funding) we can afford to take long term risks. About 60% of the investors had become common on both ends. And unless we could see the value in the merger, we did not pull the trigger. Myntra’s vision has got more realistic. Between us and Flipkart, we are grossing almost equal to what a Shopper’s Stop or LifeStyle would sell every month.
What have been the learnings from your entrepreneurship journey?
A strong founding team and great chemistry is very important. One needs least 4-5 years to prove oneself as an entrepreneur. Within 1-2 years, you will most likely look like a failure. One should set himself up to go through a series of failures and be prepared for a long haul. One should be very clear about the business model the market size and the USP of the offering, even though it will get changed over time.
Where do we see Mukesh Bansal in 2-3 years after Flipkart goes IPO?
I see my self at Myntra for at least the next 4-5 years. IPO is not an immediate focus for Flipkart. Of course, it may happen one day. The focus for us is to create an extremely differentiated experience for our users. Any kind of financial exit will just be a reward on top of it. I am also encouraging other entrepreneurs as part of Kae Capital and through a few angel investments in startups such as ZopNow.
Has starting up in India become easier in last few years?
Before starting Myntra, I used to visit India very often as part of startups I was working with. The more I came here, the more I got convinced that India held great potential. When I moved back to India in 2007, the biggest hurdle I faced was recruitment.
Everyone wanted to work for a big MNC like an IBM. The trend is now reversed as talented people want to work only for startups. India’s internet users will double in next 3 years and number of people who shop online will grow threefold. All these point to great times to come.