Apparel, footwear and accessories focused ecommerce venture, Myntra.com has raised $21 million, in a fresh funding round led by Tiger Global. The news of the funding was first reported by Pluggd.in.
According to Mukesh Bansal, CEO of Myntra, the company intends to use the funding to invest further in its technology platform, for improving the brand, and to invest in supply chain to build capacity for future growth. He said that the company is also expanding its team and hiring across the board. With this funding round, the company has raised a total of $40 million since its inception, from investors such as Tiger Global, IndoUS, IDG and Accel Partners.
Traffic, customer base and Avg transaction size: In terms of traffic, the site claims to receive about 200,000 daily visitors, and a user base of 2 million customers. On sales conversion, i.e the number of visitors who actually convert into shoppers, Bansal told MediaNama that it was roughly in mid-single digit ranging between 3%-4%. He did not comment on the cart to order conversion percentage but informed that the average cart size in terms of value is Rs 1400 and majority of transactions were between Rs 500 to Rs 3000. However when we asked the number of monthly orders, Bansal said that it was close to 80,000 to 90,000, with half of the orders being placed by new and the other half by repeat customers.
Sales across geographies:Bansal informs that about 50% of all orders are from top-10 cities while the rest are from tier-2 and 3 cities. He said that during the last 6 months, tier-2 and 3 cities have grown at a good rate due to improvements in distribution, since, a lot of brands were not available in these regions. The company offers Cash on Delivery to 4,000 pin codes out of the 10,000 pin codes which it delivers to.
Sales across categories: In terms of categories, 90% of the total sales is from the apparel and footwear segment, while the remaining 10% is contributed by accessories. The leading segments in terms of sale are sports wear, casual wear and ethnic wear. These are also the segments with extensive catalogues, he adds. The company is now working on building up its formal wear catalogue.
Impact of tv campaign: Myntra had run a big tv campaign. We asked Bansal about its impact, to which he responded that the company got a huge lift in brand perception and awareness and its efficiency for online marketing also increased substantially. He added that it helped in getting new brands on board, and instead of putting efforts in brand acquisition, the company was being approached by brands. Myntra’s catalogue is spread across 200 brands. He informs that customer acquisition cost has declined by almost 50% after the campaign.
Warehouses & Logistics: The company has its own warehouse in Bangalore and intends to set-up 3 more warehouses including ones in Delhi and Mumbai in the next 6 months. The company is already handeling logistics on its own in Delhi, Mumbai and Bangalore.
Myntra is aiming at revenues of Rs 500 crore in FY12-13, but is that a realistic target?: According to Bansal, the category offers a lot more growth. ” To get Rs 500 crore we just need a million active customers and at the moment we have 10 million ecommerce customers. There’s enough headroom and the user base will grow from 10 million to 15 million in the next two years, ” said Bansal. He added that the company plans to achieve this growth by expanding its catalogue, improving distribution, and acquiring more customers. He said that success in the category was mostly about building the right customer experience.
On the entry of Amazon: Bansal said that he did not consider Junglee.com a threat, since it was more of a price comparison service. He said that Myntra was approached by Amazon to join the service, to which it declined.
On expanding into new segments: The company intends to remain focused on fashion and lifestyle and would at best look at affiliated sub categories within the segment. Also, Myntra does not plan to offer deals or flash sales and is happy with the current season pricing model.