Myntra Design Secures $125 Million from FK Myntra Holdings

Myntra Design, a prominent fashion e-commerce platform in India owned by Flipkart, has successfully acquired Rs 1,062.5 crore, equivalent to $125 million, from its Singapore-based parent company, FK Myntra Holdings. This significant investment follows a previous injection of $81 million by Flipkart into Myntra’s holding company in Singapore.

As disclosed in a regulatory filing accessed from the Registrar of Companies (RoC), Myntra’s board has allocated 19,43,753 equity shares at an issue price of Rs 5,466 each through a rights issue to raise the mentioned capital. This funding comes during a period where e-commerce platforms are facing increasing competition, especially with the return of the Chinese fashion brand Shein to the Indian market through Reliance Retail.

Historical Context of Myntra’s Funding

Flipkart’s acquisition of Myntra in 2014 for $240 million has played a pivotal role in its growth and development in the Indian fashion e-commerce space. Notably, Myntra achieved profitability for the fiscal year ending March 2024, reporting a profit of Rs 30.9 crore, marking a remarkable recovery from a substantial loss of Rs 782.4 crore in FY23. During this timeframe, the company’s revenue from operations exceeded Rs 5,100 crore.

Myntra’s Expansion into Quick Commerce

In a bid to enhance its competitive edge, Myntra entered the quick commerce sector in November 2024 with the launch of its M-Now feature. This new service promises to deliver fashion and beauty products within just 30 minutes to 2 hours, targeting major competitors such as Zepto, Blinkit, and Instamart.

Additionally, Myntra’s parent company, Flipkart, is among several firms including Pine Labs, Razorpay, and Meesho that are relocating their domicile to India in preparation for impending public listings.