The latest e-commerce M&A brings Zovi and Inkfruit together
In yet another move towards the consolidation of Indian e-commerce industry, online retailer Zovi acquires its rival retailer Inkfruit. It came after 15 such merger/ acquisition deals over the past year making the industry experts hopeful about a bright future of the industry. Even though both the retailers have operated in a similar space, each of them has created a unique brand image of its own and this unified entity brings them some benefits which they didn't enjoy earlier.
Zovi has come up with a private brand; it has its own design and manufacturing unit, but lacks a proper distribution network. Inkfruit takes inspiration from the designs of its users and puts up on its own catalogue. Additionally, Inkfruit has a chain of distributors of its own.
This acquisition brings the promise of wider customer base and a sound distribution network. Zovi is sure to gain from the creative community of Inkfruit and a much wider catalogue of apparel and accessories for a wider age group of 16 to 45 year-olds. The unified company now can do away with overlapping expenses. Zovi can now cover more than 75 percent of its shipments by its own delivery network.
On a hopeful note about this acquisition, Zovi CEO Manish Chopra said, "We look forward to blending together with the Inkfruit team and leveraging their unique design and creative capabilities. With the increased business volumes, we will be expanding our logistics and self delivery capabilities. $ 10 million have been pumped by the two investors SAIF Partners and Tiger Global Management LLC into Zovi after the merger. He added, Zovi's third round of funding brings the total funding raised in Zovi to USD 25 million and is strong evidence of the investor's belief in the market opportunity and the Zovi team."
An equally optimistic Inkfruit CEO Kashyap Dalal said, We are excited by the opportunity to integrate the businesses and leverage complementary team strengths, product lines and customer bases to scale rapidly.