Indian online fashion retailer, Myntra, has secured a substantial US $ 81 million investment from its parent company, Flipkart, as per a report. Singapore regulatory filings confirm that FK Myntra Holdings Pvt Ltd, Myntra’s holding company, received this capital infusion in November.
This marks Flipkart’s second investment in Myntra during 2024, following a US $ 339 million injection in March. It’s important to note that this is an internal cash transfer and not considered fresh funding at the holding company level.
This financial boost comes at a crucial time for Myntra, as it faces heightened competition in the online apparel retail sector. The recent re-entry of Chinese fast-fashion giant SHEIN into the Indian market, after a five-year ban, poses a significant challenge. SHEIN’s return is expected to intensify the battle for market share among online fashion platforms.
Despite the competitive landscape, Myntra has demonstrated improved financial performance, achieving profitability in fiscal year 2024. The company reported a net profit of approximately US $ 3.7 million, a remarkable turnaround from the US $ 94.5 million net loss in the previous fiscal year. Myntra’s operating revenue also saw growth, increasing by 15 percent to approximately US $ 615 million from US $ 547 million.
Myntra has been actively expanding its services and exploring new avenues for growth. In December, the company launched M-Now, a 30-minute delivery service, making it the first specialized e-commerce platform in India to venture into quick commerce at scale. Initially launched in select areas of Bengaluru with approximately 10,000 SKUs, M-Now plans to expand to major cities like Mumbai, New Delhi, and Pune.
This move places Myntra in direct competition with existing quick commerce players like Blinkit, Zepto, and Swiggy Instamart, who have also begun offering apparel deliveries through partnerships with various brands. Beyond its core fashion offerings, Myntra is also focusing on scaling up its beauty and home decor segments.
The company faces competition from other major players in the online fashion space, including Reliance Retail’s Ajio, Tata Cliq, and Nykaa Fashion.
