Myntra gets $54M from Flipkart; celebrates 17th birthday

Indian fashion ecommerce giant Myntra has secured $54 million investment from its parent company, Flipkart.

The move comes at a critical juncture as Myntra navigates through the choppy waters of intense competition, particularly from rivals like Reliance’s Ajio and Tata Cliq. 

The funding, which was disclosed in regulatory filings in Singapore, marks the second instance within a year that Flipkart has opened its coffers to Myntra, following a significant $105 million infusion in March 2023.

How well Myntra is performing financially?

Despite the competitive landscape, Myntra has demonstrated resilience and growth, reporting a 25% increase in operating revenue, reaching Rs 4,375 crore for the year ended March 31, 2023.

However, this growth has been shadowed by an expanding net loss, which widened to Rs 782 crore.

Additionally, Myntra’s India unit, Myntra Designs Pvt Ltd, received a robust Rs 689 crore (approximately $83 million) from FK Myntra Holdings based in Singapore, further bolstering its financial health.

Expanding brand portfolio 

In its quest to stay ahead in the fashion e-commerce segment, Myntra has been aggressively expanding its portfolio of international brands.

With premium offerings experiencing rapid growth, Myntra has strategically partnered with global brands like Turkish Trendyol and French apparel brand Kiabi, enhancing its international brand offerings to more than 420. 

The expansion comes at a time when the demand in the lower-price segments appears to be softening, prompting Myntra to focus on select private labels and streamline its in-house brand offerings.

Myntra market share

Myntra holds a commendable 55% market share in the fashion e-commerce segment, according to a January research note by Bernstein.

However, the same report highlights a slowdown in transaction volumes on Myntra’s app, despite the platform exhibiting the highest growth rate among its peers at 25% in December 2023.

he fashion market's fragmented nature, both offline and online, presents a challenging environment with multiple players vying for dominance.