Myntra Designs Receives $63.7 Mn Capital From Singapore Based FK Myntra Holdings

Ecommerce fashion marketplace Myntra Designs has received a capital infusion of $63.68 Mn (INR 414 Cr) from Flipkart’s Singapore-based subsidiary FK Myntra Holdings.

As per the reports, Myntra’s filings with the Registrar of Companies (RoC), sourced through paper.vc, have revealed that it issued a total of 6.6 Mn shares to FK Myntra Holdings as part of the fundraising.

An email query sent to Myntra didn’t elicit any response till the time of publication.

This comes in light of the recent capital infusion of $176 Mn in Myntra Jabong Pvt Ltd by FK Myntra Holdings. A day after, Flipkart also infused $686 Mn in its wholesale arm Flipkart India Private Limited.

Around the same time, Flipkart Internet, which operates the company’s online retail platform, announced a $56.7 Mn (INR 370 Cr) fundraise from its Singapore parent, Flipkart Marketplace.

Recently, reports also surfaced that Flipkart will invest in its B2B commerce arm this year, with the aim of catering to customers globally through its tie-up with US-based online marketplace eBay.

Myntra Explores O2O Model

Flipkart-owned fashion portal Myntra has been exploring different avenues of growth. The company opened its first offline store with Roadster in 2017 and recently was planning to open its beauty and wellness store.

It also recorded a turnover of $314.6Mn (INR 2000 Cr) in the fiscal year 2016-17 and claimed a 100% growth for the accessories category in FY17.

Recently, reports also surfaced that Myntra is planning to acquire a 5% minority stake in Bengaluru-based outdoor gear and sports apparel company Wildcraft. This came as a part of Myntra’s brand accelerator programme, where Myntra has on-boarded brands like Chemistry and AKS.

Also, Myntra has aggressively created a robust private label business, which now accounts for nearly a fourth of its revenue. Some of its private labels are Roadster, HRX, Mast & Harbour, Dressberry and Ether, which had returned a positive EBITDA of 5%, as claimed by the company.

In December 2017, Myntra also announced the launch of its multi-brand offline stores where customers can see all the private labels that are available on its online platform. The stores are expected to be launched by the end of 2018.

The recently-published Indian government’s Economic Survey 2018 has revealed that India’s ecommerce market has reached $33 Bn, registering a 19.1% growth in 2016-2017. Further, the Indian online fashion market was pegged at $3.7 Bn in 2017, wherein Flipkart, with its subsidiaries Myntra and Jabong, claims to hold a 70% share.

In the widening ecommerce market, Myntra has been stepping up its game in fashion ecommerce. It remains to be seen what new developments are announced by Myntra with the latest capital infusion.

[The development was reported by ET.]