Myntra, the fashion and retail platform (1), has secured 1,604 Crore INR or 103 million USD fundings from FK Myntra Holdings Private Limited, its Singapore-based entity, and Flipkart, its parent entity.
As per the filings at the MCA, Ministry of Corporate Affairs, the company has allocated 45,06,213 equity shares under rights to issue to the two firms at a nominal amount of 1 INR and a premium of 3,560 INR per share.
FK Myntra Holdings has scooped 44,84,548 equity shares worth 1,596 Crore INR, and Flipkart has picked up 21,665 shares for 7,71 Crore INR. Notably, both entities have infused 16,04,66,24,493 Crore INR together. The investment came in September 2020.
Previously in 2018, Myntra had secured 176 million USD, or about 1,147 Crore INR funding from FK Myntra Holdings Private Limited. The fashion and retail ecommerce place had then issued 7,17,429 shares at face value of 1 INR each at a 15,999 premium amount per share.
Myntra to Expand Its Fashion Brand in the Middle East
The development comes after the company partnered with Emaar Group to expand its business to international markets and launch its fashion brand, Myntra Fashion, in the Middle East. Noon and Namshi, the regional ecommerce platforms of Emaar Group, would facilitate and host the Myntra Fashion brand on their website.
While commenting on the international expansion, Amar Nagaram, the CEO of the fashion and retail giant, stated that the team identified several potential channels across the globe that offered significant opportunities for the online fashion segment during its research.
However, the Middle East stood out due to its audience demographic profile, too high mobile penetration, the similarity in fashion choices, and a large Indian origin population. The team is looking forward to observing a 5X growth with the partnership in the next two years, added Amar.
Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena founded the fashion and retail marketplace Myntra in 2007. Later in May 2014, the e commerce giant Flipkart acquired the company and came under the Walmart banner after it acquired Flipkart in August 2018.