Myntra has received a significant investment of USD 54 million from its parent company, Flipkart. The injection of funds comes at a critical juncture for Myntra, as it faces intensified rivalry from competitors such as Reliance’s Ajio and Tata Cliq.
The funding was disclosed through regulatory filings in Singapore and is the second such major investment from Flipkart in Myntra within a year. The previous investment was of USD 105 million in March 2023.
Despite the challenges posed by its competitors, Myntra reported a 25 per cent growth in operating revenue, reaching Rs 4,375 crore for the fiscal year ending 31 March 2023. However, this growth was tempered by an expanded net loss, which reached Rs 782 crore during the same period.
Myntra’s strategic focus on expanding its portfolio of international brands has been instrumental in driving growth, with premium offerings experiencing notable traction. The platform now has over 420 global brands, contributing approximately a quarter of its revenue, up from 280 labels just two years ago.
In a move to streamline its operations and enhance efficiency, Myntra underwent a restructuring exercise last July, resulting in the layoff of 50 employees. This restructuring aligned with Myntra’s shift towards prioritising select private labels over scaling a wide range of in-house brands in the apparel space.
Despite maintaining a dominant 55 per cent market share in the fashion e-commerce segment based on monthly active users (MAUs), Myntra faces challenges in translating user engagement into transactions. This was reflected in its gross merchandise value, which grew by a modest 12 per cent in FY23, compared to 35 per cent in the previous fiscal year.
The investment from Flipkart comes on the heels of the e-commerce giant securing USD 600 million commitment from its US-based parent company, Walmart, as part of a larger USD 1 billion funding round.
