Flipkart has invested Rs 414.60 crore in its fashion arm Myntra, reports data platform Paper.VC. The investment was made by Singapore-based affiliate FK Myntra Holdings Pvt Ltd. The platform found about the development in company’s ministry of corporate affairs’ filings.
It looks like Myntra will use the funds to support its plans to push into the offline space like opening chain of brick-and-mortar stores selling multi-brand cosmetics and wellness items. In October 2017, Myntra along with its partner, Barcelona-based fashion brand, Mango had opened its first brick-and-mortar store in Delhi. The e-tailer had bagged omnichannel distribution rights of Mango in India. As part of the alliance, the companies will set up 25 Mango stores in five years. The companies had said they expect to see about 250% growth in business and a 50:50 split between online-offline sales in a year. Before that Myntra announced it had bagged distribution and management rights of the international fashion brand Esprit. While announcing the addition of Mango venture Myntra CEO Ananth Narayanan, said that the fashion e-tailer is looking out for more such partners for omnichannel presence in the country. He said that Myntra is expecting 10-15% of business from such partnerships in the next five years.
The fund will allow Myntra to compete with its direct rival Amazon, which is also focusing on fashion besides other categories. In September 2016, Amazon India had launched its first private label fashion brand in the country called Symbol. In Septemeber 2017, Amazon India opened its standalone Fashion Imaging Studio in Gurgaon, in a bid to expand its fashion e-commerce market in the country. This was Amazon’s third such studio globally, after New York and London. At that time Amazon said that it added close to 50 fashion brands in 2017, including brands such as Under Armour, Steve Madden Jewelry, Marks & Spencer, Forever 21, Forever New, French Connection, Emporio Armani, and Versus by Versace among others.
Apart from that, Myntra competes with Koovs, TataCLiQ, Voonik, Reliance Jio’s Ajio, and others.