Flipkart has invested Rs 338 crore (~$50.44 million) in its online fashion portal Myntra, reports the Mint. The company is currently targeting operating profitability by March next year, with plans to increase sales of higher-priced products and charging for certain deliveries. Myntra was acquired by Flipkart back in May 2014.
Note that Myntra has been lacking in direction over the past year; the company relaunched its mobile website in November last year, after having shut it down on May 15th the same year. Last month, barely a month after a top deck reshuffle at Flipkart, head of commerce division and Myntra chairman Mukesh Bansal quit the company.
New appointments: In July, Myntra appointed Ananth Narayanan as its new chief executive officer and in October, the company hired Gunjan Soni as its chief marketing officer and head of international brands business. In July again, the company had appointed Ambrish Kenghe as senior VP and head of products.
Credit line for Flipkart: Earlier this month, HDFC Bank extended a line of credit of over Rs 450 crore to Flipkart. The company’s move to get credit from banks came shortly after Morgan Stanley (one of its investors) marked down its investment in the company by 27% reducing Flipkart’s valuation to little over $11 billion from $15.2 billion.
Interestingly, a source-based TechCrunch report from earlier today indicates that Flipkart is looking to raise up to $11 billion in funding, although the funding might come at a down valuation, valuing the company at $11-$14 billion. The report mentions that Alibaba might be one of the potential investors.
Flipkart’s wallet: Last week, Flipkart said it was testing a pilot digital wallet service named ‘Flipkart Money’, primarily aimed at cutting costs while handling cash refunds. The wallet will also be usable as a payment method, however, it can only be used for payments and refunds on Flipkart’s site. Note that, in September 2015, Flipkart acquired a majority stake for Rs 45.4 crore in FX Mart, which holds a prepaid payments instrument license from the Reserve Bank of India (RBI).