Myntra has received a US $ 54 million fund infusion from parent Flipkart, at a time when the online fashion platform is witnessing intense competition from Reliance’s Ajio and Tata Cliq.
The money was received by Myntra’s parent company, FK Myntra Holdings Pvt Ltd, in January, according to regulatory papers issued in Singapore. This is Flipkart’s second investment in the company in as many months. In March 2023, Flipkart invested US $ 105 million in Myntra.
Myntra has been working to expand the range of collections it offers from foreign companies, with premium options growing quickly. Demand for online fashion in the more affordable price ranges has recently cooled. Myntra has more than 420 global brands in its portfolio, and gets about a quarter of its revenue from international brands. The fashion e-tailer has also started focussing on select private labels instead of scaling a wide range of in-house brands it had started in the apparel space.
As per a January research note by Bernstein, Myntra had a 55 per cent market share in the fashion ecommerce segment based on monthly active users (MAUs). Flipkart’s investment in Myntra has come close on the heels of the horizontal marketplace itself receiving a US $ 600 million commitment from US-based parent Walmart, as part of a US $ 1 billion funding round.