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Myntra secures $54M investment from Flipkart
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Funding follows $105 million infusion in March 2023
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Shows resilience and growth with 25% increase in operating revenue
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Myntra Designs Pvt Ltd receives Rs 689 crore (approximately $83 million)
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Expansion of international brand portfolio with global brands
Indian fashion e-commerce leader Myntra has secured a $54 million investment from its parent company, Flipkart.
This move comes at a crucial time as Myntra faces fierce competition, especially from rivals like Reliance's Ajio and Tata Cliq. The funding, disclosed in regulatory filings in Singapore, is the second instance in a year that Flipkart has invested in Myntra, following a significant $105 million infusion in March 2023.
How is Myntra performing financially?
Despite facing stiff competition, Myntra has showcased resilience and growth, evidenced by a 25% surge in operating revenue, reaching Rs 4,375 crore for the fiscal year ending on March 31, 2023. However, this growth has been overshadowed by an expanding net loss, which widened to Rs 782 crore during the same period. Notably, Myntra's India unit, Myntra Designs Pvt Ltd, received a substantial infusion of Rs 689 crore (approximately $83 million) from FK Myntra Holdings, headquartered in Singapore, further reinforcing its financial stability.
Expansion of Brand Portfolio:
To maintain its lead in the fashion e-commerce segment, Myntra has been aggressively expanding its portfolio of international brands. With premium offerings experiencing rapid growth, Myntra has strategically partnered with global brands like Turkish Trendyol and French apparel brand Kiabi, enhancing its international brand offerings to more than 420. This expansion comes at a time when demand in the lower-price segments seems to be softening, prompting Myntra to focus on select private labels and streamline its in-house brand offerings.
Market Share Analysis:
Myntra commands a commendable 55% market share in the fashion e-commerce sector, as per a January research report by Bernstein. However, the same report underscores a deceleration in transaction volumes on Myntra’s app, despite the platform exhibiting the highest growth rate among its peers, standing at 25% in December 2023. The fashion market's fragmented nature, both offline and online, presents a challenging environment with multiple players contending for supremacy.
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