Flipkart Invests Rs 338 Crore To Boost Myntra
In an attempt to boost its leadership position in the fashion segment, Flipkart has infused Rs.338 crore into online fashion store Myntra.
The fresh funding comes at a time when Jabong received $20 Million from Global Fashion Group, last week, to keep it afloat for another year.
Myntra, which was acquired by Flipkart for $330 million in May 2014 in the biggest domestic consumer Internet deal at the time, is targeting gross sales of $1 billion in the next fiscal year. Gross sales do not include discounts and returns.
As per the filings, Myntra Designs Pvt. Ltd received this investment from Singapore-based Flipkart subsidiary FK Myntra Holdings in January.
The company has also set a target of achieving operating profitability by March 2017 and plans to increase sales of higher-priced products and charging customers for deliveries of certain items to reduce losses.
The company also re-launched its mobile website last month in a bid to lure back lost customers.
Myntra however also lost its co-founder and Flipkart commerce head Mukesh Bansal and finance head Prabhakar Sunder last month. Sources told that a few more top level departures were expected following Bansal’s exit, especially those whom he hired during his Myntra stint.
For the year ended 31 March 2015, Myntra’s revenue grew 77% to Rs 758 crore from Rs 427 crore the previous year while losses grew four fold to Rs 740 crore from Rs 173 crore the year earlier, as per RoC documents.