Fashion e-tailer Myntra has raised $176 million from Flipkart’s Singapore-based subsidiary FK Myntra Holdings. The fresh capital will be used to strengthen strategies and explore the market further.
Last year in October, the company’s business-to-business (B2B) retail arm, Myntra Jabong got a working capital credit of $7.7 million from Kotak Mahindra Bank.
Earlier, the fashion e-tailer had taken a loan of $31.1 million from Yes Bank.
The Flipkart-owned company is exploring various opportunities for the market expansion.
Beefing up its partnership with well-known brands, Myntra recently acquired 5 per cent stake in Bengaluru-based outdoor gear and sports gear firm Wildcraft. This came as a part of Myntra’s brand accelerator programme, where Myntra has on-boarded two women-centric brands – AKS and Chemistry.
In February last year, the company struck a similar deal with Mango to manage 25-30 offline stores as well as the online presence of the Spanish-headquartered brand in India.
Myntra want to shift sales away from discounts and differentiate its platform. Striking exclusive partnership with well-known brands is a part of its strategy as Myntra wants to outrun Amazon India, which is fast catching up in the segment.
Last year, the fashion-centric e-commerce platform also announced the launch of its multi-brand offline stores where customers can see all the private labels that are available on its online platform.
Currently, it has 14 in-house private label brands including HRX, Moda Rapido, All About You among others. HRX by Hrithik Roshan is already a Rs 120 crore brand while Moda Rapido and AllAboutYou said to have crossed Rs 50 crore annual revenue each.
Meanwhile, Flipkart had reported a loss of 68 per cent in FY17 at Rs 8,771.4 crore. The revenue of the company, however, grew by 29 per cent and stood at Rs 19,854.6 crore in the last fiscal.
Myntra had reported an 87 per cent jump in its turnover in FY17 as compared to previous one. It had a total turnover of Rs 2,000 crore in the aforementioned period.
The funding news was first reported by YourStory