E-tailer Myntra has received a capital infusion of around Rs 415 crore from its Singapore- based parent, FK Myntra Holdings as per latest regulatory filings. FK Myntra Holdings paid Rs 624 per share of Myntra Designs, which was approved by the board in January this year, as per business research platform Paper.vc.
Recently, Myntra’s parent Flipkart pumped a massive amount of Rs 4,500 crore in its wholesale arm-Flipkart India.
Previously, the e-tailer had put Rs 1,148 crore in its business-to-business fashion arm Myntra Jabong Private Limited, a wholesale unit for fashion portals Myntra and Jabong, through FK Myntra Holdings.
The fresh capital will be used to scale up its business and explore the market further.
Myntra had reported an 87 per cent jump in its turnover in FY17 as compared to previous one. It had a total turnover of Rs 2,000 crore in the last fiscal.
Beefing up its partnership with well-known brands, the fashion portal recently acquired 5 per cent stake in Bengaluru-based outdoor gear and sports gear firm Wildcraft. This came as a part of its brand accelerator programme, where fashion e-taler has on-boarded two women-centric brands – AKS and Chemistry.
In February last year, the company struck a similar deal with Mango to manage 25-30 offline stores as well as the online presence of the Spanish-headquartered brand in India.
Myntra want to shift sales away from discounts and differentiate its platform.
Last year, the fashion-centric e-commerce platform 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. It has 14 in-house private label brands including HRX, Moda Rapido, All About You among others
Striking exclusive partnership with well-known brands is a part of its strategy as Myntra wants to outrun Amazon India, which is fast catching up in the segment.
Flipkart group with the combination of its own fashion business along with Jabong and Myntra claim to dominate the online fashion space.
Though, Amazon India has also been stepping up to consolidate its position in the segment.
Last year the e-tailer had launched its in-house brand called AmazonBasics in India. It also has private label brands Symbol and Myx in fashion and apparels.
In Sept last year, Amazon India launched BLINK, the Amazon Fashion Studio that offers allied services such as high-quality catalog imaging to fashion sellers on, in Gurugram. Amazon India vice-president Manish Tiwary in his earlier interview said that the company is planning to aggressively expand its private label this year.
Meanwhile, Amazon has also been making more investments in its Indian arm to have a competitive advantage over its rivals. The parent firm infused Rs 1,950 crore into its Indian arm Amazon Seller Services (ASS) in January 2018.
The development news was first reported by The Times of India.