Ahead of festive season sale, ecommerce fashion marketplace Myntra has received a capital infusion of $103 Mn from Flipkart’s Singapore-based subsidiary FK Myntra Holdings.
Myntra Jabong India issued 10,79,136 shares to FK Myntra Holdings, and 97,058 shares to QuickRoutes International on October 3, at a price per share of INR 6,427.
Prior to this, in 2018, Myntra Jabong Pvt Ltd received a capital infusion of $176 Mn by FK Myntra Holdings.
The investment comes after it plans to go big for Myntra’s Big Fashion Festival sale that kicks off on October 16. It expects to double sales compared to the same period last year.
Myntra was founded by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena in 2007. In 2014, the company was acquired by Flipkart at a deal value of INR 2K Cr ($290 Mn). Jabong was then acquired by Myntra in 2016 for $70 Mn. Flipkart shut down on its fashion portal Jabong in February to divert its focus on Myntra.
Flipkart-owned fashion and retail platform had recently expanded its offerings to international markets as well with the launch of fashion brand, Myntra Fashion, in the Middle East.
According to company filings, Myntra Designs that operates www.myntra.com and its mobile app had recorded INR 539.4 Cr in loss in FY19. The company reported an operational income of INR 1041.11 Cr, an improvement of 1.55X from INR 407.2 Cr in FY18. At the same time, the company’s overall income for FY19 is INR 1088.8 Cr.
Flipkart shut down on its fashion portal Jabong in February to divert its focus on Myntra.
In June 2019, Myntra launched a second offline store in Bengaluru for Roadster. Further, the company has been relying heavily on its private labels to continue to dominate the fashion ecommerce industry.
Myntra also plans to broaden its horizons by focusing on Tier 2 cities with kirana stores as last-mile delivery agents. The ecommerce platform will also be introducing video content to attract more customers.
Myntra claims that it will deliver to over 27,000 pin codes and has added 6,000 kirana stores since last year.