Fashion and retail platform Myntra has raised INR 1,604 Cr ($103 Mn) funding from its Singapore-based entity FK Myntra Holdings Private Limited and its parent entity Flipkart.
According to the ministry of corporate affairs (MCA) filings accessed by Inc42, the company has allocated 45,06,213 equity shares under rights issue to the two entities at a nominal amount of INR 1 per share and a premium of INR 3,560 per share.
FK Myntra Holdings has picked up 44,84,548 equity shares worth INR 1,596 Cr and Flipkart has picked up 21,665 shares for INR 7,71 Cr. Both the companies together infused INR 16,04,66,24,493 Cr. The infusion came through in September 2020.
Prior to this, the company had raised INR 1,147.8 Cr ($176 Mn) funding from FK Myntra Holdings Private Limited back in 2018. The fashion and retail marketplace had then issued 7,17,429 shares of INR 1 face value each at a premium amount of INR 15,999 per share.
The development comes after Myntra forged a partnership with Emaar Group to expand its offerings to international markets as well as launch the fashion brand, Myntra Fashion, in the Middle East. The expansion will be facilitated by Myntra’s latest partnership with Emaar Group-owned regional ecommerce platform Noon and Namshi that will host Myntra Fashion brand on their website.
Commenting on the international expansion, Myntra CEO Amar Nagaram, said, “Our research identified high levels of potential channels across the globe offering significant opportunities in the online fashion segment. Amongst these, the Middle East stood out in terms of the audience’s demographic profile, extremely high mobile penetration, the similarity in fashion preferences and a large population of Indian origin. We are looking forward to a 5X growth from the partnership over the next two years.”
The fashion and retail platform Myntra was founded by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena back in 2017. The company was acquired by the ecommerce giant Flipkart in May 2014, and came under Walmart banner after the Flipkart acquisition.
In July 2016, Myntra acquired another fashion and retail platform Jabong in a deal estimated to be worth $70 Mn. After that Myntra and Jabong started integrating their key business functions and streamlining several processes, while operating separately. However, Flipkart decided to shut down Jabong this year and focus solely on Myntra.