Gurugram-headquartered Myntra Jabong India Pvt. Ltd, the B2B (business-to-business) fashion retail arm of online fashion retailer Myntra, has secured $31.1 million as a part of debt funding from Yes Bank.
Flipkart-owned Myntra Jabong India is likely to use the money to meet its working capital requirements.
The company secured the loan in July through a hypothecation agreement, or by pledging its assets as collateral, according to ROC filings with the Ministry of Corporate Affairs, reported VCCircle.
Myntra Jabong India, which was earlier known as Quickroutes Internet Pvt. Ltd, was created in March 2017 as the B2B fashion e-tailer to e-commerce marketplaces Myntra and Jabong, besides others.
Earlier, Myntra said, it is working with a new seller Sane Retails for selling private brands of the company to reduce its dependency on Vector E-commerce. And as part of its brand accelerator programme, the fashion retail company has tied up with two women’s apparel brands- western wear brand Chemistry and ethnic wear brand AKS.
Besides, online platforms have been pushing for private labels. Private labels are considered an important ingredient for e-commerce companies to improve unit economics as they offer better margin in a business where margins are wafer thin. It also has 14 in-house brands including its largest selling Rs 300 crore brand Roadster.
At present, the fashion retailer boasts of private labels such as Roadster, HRX, Dressberry and Anouk.
Gurugram-based fashion retailer posted gross sales of around Rs 450 crore during its three-day season-end sale. Overall sales grew 56% from last July’s season-end sale, driven primarily by top sports brands such as Puma and Nike.
The figures also include sales from Jabong, which Myntra acquired last year for $70 million.