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Ola, Flipkart and Snapdeal keen on their acquired brands

Young companies are retaining the brand names of those they acquire, indicating that it is not just scale that is important but also the acquired brand's loyal base

Bhavish Aggarwal, co-founder of Ola
Bhavish Aggarwal, co-founder of Ola

Acquisition, and not merger, seems to be the trend among India’s online consumer businesses. From Flipkart’s acquisition of Myntra to Snapdeal’s buyout of Exclusively.com, to the more recent Ola’s (previously Ola Cabs) deal with TaxiForSure (TFS), the buyers have chosen to let the acquired entity exist and operate separately. One of the key reasons for these companies to retain the brand identity of the new company under their aegis is to keep the brandpositioning intact. This allows them to reap dividends of the hard work, resources and millions of dollars ...