Online fashion store Myntra has finally confirmed that it has raised $50 million (around Rs 300 crore) led by Azim Premji’s Premji Invest along with new and existing investors. The company plans to use the investment raised to strengthen its technology, infrastructure and customer experience, for future growth initiatives and hiring.
Including the current investment, Myntra has raised a total of $125 million investment across multiple rounds: a $25 million round late last year, a $21 million round in Feb 2012, a $14 million round in March 2011 and a $5 million round in November 2008. It had also raised an undisclosed seed amount from Accel Partners and Mumbai Angels in 2007.
Interestingly, a source-based Times Of India report today says Myntra is raising another $50 million investment shortly and has held talks with L Capital and US-based Sands Capital on this, while its sister publication The Economic Times cites sources to say Myntra is raising $40 million more and is in final talks with L Capital Asia and a few other investors on this. It also says investors now own 80% stake in the company with the remaining held by Myntra founders and senior management team.
The TOI report says Premji Invest has invested $20 million of the total $50 million, while the remaining $30 million has been put in by Belgium-based Sofina and existing investors. Note that Sofina had also participated in Flipkart’s latest investment round where it had raised $160 million from investors like Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital.
When we contacted Myntra for a confirmation on this, the company spokesperson declined to comment saying they are not permitted to disclose any details about their new investors and additional funding right now.
Started in 2007, Myntra is probably one of the few remaining e-commerce ventures which still hasn’t pivoted to a marketplace model in the country, with the other prominent exception being HomeShop18 which claims to be the only company in the e-commerce space in India to have FDI approval.
Myntra currently claims to offer around 50,000 products from over 600 brands like Nike, Adidas, Puma, Lee, Levis, Arrow, Biba, FabIndia, and Timberland among others. This includes Hrithik Roshan’s casual wear brand HRX which is manufactured and sold exclusively on Myntra.com and the company’s seven private labels – Roadster, Dressberry, Mast & Harbour, Anouk, SherSingh, Kook n Keech and ETC. It also has exclusive deals with UK’s Raised on Denim, Manish Arora and a tie-up with BIBA to sell fashion designer Rohit Bal’s new collection ‘BIBA By Rohit Bal‘.
Myntra faces stiff competition from Flipkart which has been strengthening its fashion category over the last year. Last month, the company had launched a lifestyle private label called Flippd, through which it is initially offering men’s apparel and footwear with plans to offer women’s apparel, sunglasses and watches by the end of this quarter.
In October 2013, Flipkart CEO Sachin Bansal had mentioned that Fashion category was a key focus for the company going forward and it was hoping to become a leader in the fashion category by Diwali.
Rocket Internet-backed online fashion and lifestyle store Jabong had also recently closed a “multi-hundred million dollar” investment, of which $27.5 million was invested by UK’s development finance institution CDC Group plc.
Update: Headline changed