Ecommerce giant Flipkart has infused over $50 Mn (INR 338 Cr) in it’s online fashion portal Myntra, according to recent RoC filings, reported Livemint.
The move is made in a bid to boost Myntra’s position in the fashion segment.
Myntra received the funds from Singapore-based FK Myntra Holdings Pvt. Ltd, a unit of Flipkart Ltd, in January 2016, as per the documents.
The fresh funding comes at a time when Jabong received $20 Mn from Global Fashion Group, last week, to keep it afloat for another year.
Myntra’s revenue grew by 77% to $112.8 Mn (INR 758 Cr.), for the year ended 31 March 2015. Losses, however, tripled to $167.6 Mn (INR 1,126.60 Cr) in fiscal 2015 from $57 Mn (INR 386.10 Cr) the year earlier, according to documents filed with the Registrar of Companies.
In order to push revenue, Flipkart launched an advertising platform Brand Story Ads, on its mobile app and launched its mobile wallet Flipkart Money.
Earlier in February 2016, as a restructuring move by CEO Binny Bansal in a bid to focus only on profitable ventures and to offload liabilities, Flipkart reportedly shut down its grocery delivery division ‘Nearby’.
Prior to this, in January 2016, Myntra took a U-turn on its app only strategy, and re-launched its mobile website, in a bid to avoid missing out on customers.
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