Flipkart pumps Rs 338 crore into Myntra

12 Mar '16
2 min read
Courtesy: Myntra
Courtesy: Myntra

E-commerce major Flipkart has infused Rs.338 crore into its online fashion store Myntra, according to documents filed with the Registrar of Companies, livemint has reported.

The cash infusion is seen as an attempt to boost Myntra's leadership position in the fashion segment.

According to the documents, Myntra Designs Pvt. Ltd received the funds in January from Singapore-based FK Myntra Holdings Pvt. Ltd, a unit of Flipkart Ltd.

The fresh funds come at a time when Myntra's nearest rival, Jabong, is struggling to stay afloat.

Myntra has set a target of achieving operating profitability by March 2017 and plans to increase sales of higher-priced products and charging customers for deliveries of certain items to reduce losses.

For the year ended March 31, 2015, Myntra's revenue grew 77 per cent to Rs. 758 crore from Rs. 427.26 crore the previous year. Losses, however, almost tripled to Rs.1,126.60 crore in fiscal 2015 from Rs.386.10 crore the year earlier, according to documents filed with the Registrar of Companies.

Gross sales for the year ended March 31, 2015 stood at Rs.2,569 crore. In comparison, Jabong posted losses of Rs. 454 crore on sales of Rs. 811 crore for the year ended 31 December 2014. (SH)

Fibre2Fashion News Desk – India

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