Myntra Receives $54 Million Infusion from Parent Company Flipkart
- ByStartupStory | March 4, 2024
Myntra, amid intense competition from rivals like Reliance’s Ajio and Tata Cliq, has received a $54 million fund infusion from parent company Flipkart.
This marks the second investment from Flipkart within a year. According to regulatory filings in Singapore, Myntra’s holding company, FK Myntra Holdings Pvt Ltd, received the fund in January. “Flipkart had infused $105 million into Myntra in March 2023,” as per the documents.
Myntra has been focusing on enhancing its portfolio of international brands collections, particularly with premium offerings experiencing rapid growth.
“Online fashion in the lower-price segments has lately witnessed a softness in demand,” highlighting the evolving market dynamics. Despite challenges, Myntra reported a 25% growth in operating revenue to Rs 4,375 crore for the year ended March 31, 2023, although its net loss widened to Rs 782 crore.
“Myntra has more than 420 global brands in its portfolio, and gets about a quarter of its revenue from international brands,” showcasing its diversified approach.
The fashion e-tailer has also shifted its focus to select private labels, streamlining its in-house brands portfolio. “In December 2023, Myntra exhibited the highest growth rate amongst peers at 25%,” as indicated in a research note by Bernstein.
However, despite its market share dominance, Myntra faces challenges in translating user engagement into transactions. “Myntra’s gross merchandise value grew only 12% in FY23 as compared to 35% in FY22,” reflecting shifting consumer behaviors.
Flipkart’s investment in Myntra comes as part of a broader funding round, with the horizontal marketplace itself receiving a $600 million commitment from parent company Walmart.
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