Myntra has secured a $54 million capital injection from its parent company, Flipkart, amidst heightened competition from rivals such as Reliance’s Ajio and Tata Cliq in the online fashion sector. According to regulatory filings in Singapore, FK Myntra Holdings Pvt Ltd, Myntra’s holding company, received this funding in January, marking Flipkart’s second investment in the platform within a year. In March 2023, Flipkart had previously infused $105 million into Myntra.
For the fiscal year ending March 31, 2023, Myntra reported a 25% increase in operating revenue from the previous year, reaching Rs 4,375 crore, although the net loss widened to Rs 782 crore. In January, Myntra Designs Pvt Ltd, Myntra’s India unit, also received Rs 689 crore (approximately $83 million) from FK Myntra Holdings.
In response to evolving market dynamics, Myntra has focused on expanding its collection of international brand offerings, with premium products experiencing rapid growth. The lower-priced segments of online fashion have recently seen a softening in demand.
Recent developments include Myntra exclusively selling products from the Turkish brand Trendyol, owned by the Alibaba group, and the entry of French apparel brand Kiabi into the Asian market through a partnership with Myntra.
Myntra, with over 420 global brands in its portfolio, derives about a quarter of its revenue from international brands. The company has shifted its strategy to focus on select private labels, streamlining its range of in-house brands, leading to a restructuring exercise and the laying off of 50 employees in July of the previous year.
According to a research note by Bernstein in January, Myntra held a 55% market share in the fashion e-commerce segment based on monthly active users (MAUs), while Reliance-owned Ajio held around a 33% market share. Despite exhibiting the highest growth rate among peers in December 2023 at 25%, Myntra’s gross merchandise value grew only 12% in FY23 compared to 35% in FY22, according to the report.
Flipkart’s investment in Myntra follows closely on the heels of the horizontal marketplace securing a $600 million commitment from its US-based parent Walmart, as part of a larger $1 billion funding round.
