Technoglitch
Core Member
In an attempt to boost its leadership position in the fashion segment, Flipkart has infused Rs.338 crore into online fashion store Myntra, according to documents filed with the Registrar of Companies.
Myntra Designs Pvt. Ltd in January received the funds from Singapore-based FK Myntra Holdings Pvt. Ltd, a unit of Flipkart Ltd, the documents show.
The fresh funds come at a time when Myntra’s nearest rival, Rocket Internet-backed Jabong, is struggling—it recently underwent a management overhaul following the exit of founders Praveen Sinha and Arun Chandra Mohan in September. The company subsequently roped in former Benetton executive Sanjeev Mohanty as its chief executive officer.
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.
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, Mint reported on 8 December.
For the year ended 31 March 2015, Myntra’s revenue grew 77% to Rs.758 crore fromRs.427.26 crore the previous year. Losses, however, almost tripled to Rs.1,126.60 crore in fiscal 2015 from Rs.386.10 crore the year earlier, according to documents filed with the Registrar of Companies.
Flipkart invests another Rs338 crore in Myntra - Livemint
Myntra Designs Pvt. Ltd in January received the funds from Singapore-based FK Myntra Holdings Pvt. Ltd, a unit of Flipkart Ltd, the documents show.
The fresh funds come at a time when Myntra’s nearest rival, Rocket Internet-backed Jabong, is struggling—it recently underwent a management overhaul following the exit of founders Praveen Sinha and Arun Chandra Mohan in September. The company subsequently roped in former Benetton executive Sanjeev Mohanty as its chief executive officer.
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.
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, Mint reported on 8 December.
For the year ended 31 March 2015, Myntra’s revenue grew 77% to Rs.758 crore fromRs.427.26 crore the previous year. Losses, however, almost tripled to Rs.1,126.60 crore in fiscal 2015 from Rs.386.10 crore the year earlier, according to documents filed with the Registrar of Companies.
Flipkart invests another Rs338 crore in Myntra - Livemint
