Indian ecommerce giant, Flipkart has infused $176 Mn in its fashion arm Myntra Jabong Private Limited. Per se reports, the fund infusion was done in February this year and the funding was routed through Flipkart’s Singapore-based subsidiary FK Myntra Holding Private Limited.
As stated in the company filings, Myntra Jabong Pvt. Ltd. issued 7,17,429 shares of INR 1 face value each at a premium of $245.26 (INR 15,999) per share, thus raising $176 Mn (INR 1,147.8 Cr).
In July 2017, Myntra had renamed one of its associated entity: QuickRoutes Internet Private Limited as Myntra Jabong Private Limited to become a B2B seller. Thus, Myntra Jabong Private Limited acts as a B2B seller of fashion and fashion-related merchandise to ecommerce marketplaces Myntra and Jabong, apart from other such companies. This development came in almost a year after Flipkart acquired Jabong in an all-cash deal of $70 Mn.
An email sent to Myntra did not elicit any response till the time of publication.
Myntra, as a fashion subsidiary of Flipkart 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 also 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.
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.
As the companies explore online to offline model, the recent influx of funds is bound to help Myntra Jabong Pvt’ Ltd to strengthen its strategies and explore the Indian ecommerce market further, with the timely boosters from parent Flipkart.
[The development was first reported by YourStory]