Fashion e-commerce platform Myntra Design received $125 M from parent entity
The Singapore-based parent company FK Myntra Holdings provided Rs 1,062.5 crore, or $125 million, to Flipkart’s Indian fashion e-commerce platform, Myntra Design.
Before this, Myntra’s holding company in Singapore received $81 million from Flipkart.
In order to raise the aforementioned sum, the Myntra board issued 19,43,753 equity shares at an issue price of Rs 5,466 each on a right issue basis, according to its regulatory filing obtained from the Registrar of Companies (RoC).
This happens at a time when e-commerce platforms are up against fierce competition, which is made worse by Shein, a Chinese fashion brand, reentering the Indian market through Reliance Retail.
Myntra was purchased by Flipkart in 2014 for $240 million.
The fashion e-commerce giant reported a profit of Rs 30.9 crore for the fiscal year that ended in March 2024, marking a dramatic recovery from a huge loss of Rs 782.4 crore in FY23. In the same time frame, its operational revenue exceeded Rs 5,100 crore.
With the launch of its new feature, M-Now, in November 2024, Myntra entered the quick commerce market to compete with Zepto, Blinkit, and Instamart, among other major players, by delivering fashion and beauty products in as little as 30 to 2 hours.
Along with companies like Pine Labs, Razorpay, and Meesho, Myntra parent Flipkart is moving its headquarters to India in preparation for going public.
