Myntra, Flipkart’s fashion arm has recently purchased 51 per cent stakes in Hrithik Roshan’s lifestyle brand HRX. The brand which is jointly owned by Bollywood’s heartthrob and Exceed Entertainment has not yet disclosed the amount paid by Myntra to acquire the stakes.
According to the sources close to the development, Flipkart will be flushing out huge funds to further increase the brand’s presence in the market. It is also planning to launch new categories such as inner ware and men's grooming. With this move, Myntra now has the upper hand on HRX with higher stakes, on the other hand, Roshan and Exceed Entertainment will now have to compromise with just 49 per cent shares.
HRX was started in 2012 and was exclusively licensed to Myntra in 2013.This strategic investment is a first of its kind in the industry, wherein a celebrity-incubated brand has aligned with a leading e-fashion retailer in an equity model.
As per HRX’s future plans, it is aiming to hit a revenue of 200 crore by the end of fiscal 2017, hence almost doubling the amount as compared to its last fiscal year. Company has set a goal of Rs 500 crore revenue by fiscal 2019 and to achieve its target, brand is focusing on penetrating deeper into the Indian market to explore opportunities.