Flipkart-owned fashion e-tailer Myntra has acqui-hired logistics startup InLogg, which is operated by InLogg Intenet Pvt. Ltd, to help solve delivery inefficiencies in terms of cost and reach, it said in a statement.
As part of the deal, InLogg’s team has joined Myntra, it said.
Founded by former Flipkart employees Preeti Jain, Hemant Agrawal and Prateek Gautam in 2015, InLogg is an aggregator of logistics vendors providing services to ecommerce and retail companies. It joins hands with courier firms in tier II and III towns to enable delivery services in remote areas.
With this acquisition, Myntra will be able to strengthen its logistics capability with an expanded reach and improved customer experience, it said.
With InLogg on board, Myntra’s delivery costs in smaller cities will be reduced by about 25%, said Ananya Tripathi, head of strategy, Myntra.
“The InLogg acqui-hire will help us scale while delivering great customer experience in Tier 2, 3 and 4 cities. It will allow us to leverage local and regional players to enhance our reach, reduce delivery time and develop a plug and play model which can be scaled in the future,” Tripathi said.
Ambarish Kenghe, chief product officer, Myntra, said, “InLogg brings deep domain knowledge combined with technology-led thinking which will help enhance our supply chain and logistics roadmap.”
Last month, Myntra and Jabong said they will share their logistics infrastructure by bringing together back-end and supply chain functions.
Though Myntra acquired Jabong from Global Fashion Group for $70 million (Rs 470 crore) in July 2016, both the entities continue to operate as independent consumer platforms. However, Jabong will soon introduce Myntra’s private labels that include Roadster, HRX, Dressberry and Roadster and Mast & Harbour, among others, on its platform.
In September last year, VCCircle reported that Myntra moved the research and development team of Jabong in Bengaluru to its own facility, less than two months after the acquisition.
Last month, Myntra launched its first offline exclusive store in Bangalore for Roadster, its fastest growing and most profitable private label. Roadster, which was launched in 2012, reached a run rate of Rs 500 crore in 2016 and is expected to achieve a run rate of Rs 1,000 crore by FY2018-19.
Previously, Myntra also claimed that it was on track to achieve a $2 billion run rate and attain profitability by FY2017-18.
Earlier this month, the company said that is in the nascent stages of overhauling its technology platform and integrating it deeper with artificial intelligence (AI) and machine learning (ML) across business functions.
InLogg is Myntra’s fourth technology-led acquisition. It acqui-hired Cubeit, a Bangalore-based tech startup in 2016 and Native5, another Bangalore-based mobile App development firm, in 2015. Previously, in 2013, it acquired Fitiquette, a San Francisco-based technology startup.
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