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.
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.
, online fashion store
, Global Fashion Group
, Mukesh Bansal