Eyeing at making Myntra an ultimate online fashion destination of the country its parent company Flipkart has injected another massive funding into the online portal. Myntra has been funded with about Rs 338 cr by Flipkart as per the documents filed with the registrar of the companies.
This funding has been made by FK Myntra Holdings Pvt. Ltd, which is a Singapore-based firm and also a unit of Flipkart.
The Bengaluru-based company has subsequently roped in former Benetton executive Sanjeev Mohanty as its CEO. This fresh round of funding will surely put Myntra a step ahead in competition as its immediate rival Jabong is going through a stiff time with a colossal management revamp following the exit of founders Praveen Sinha and Arun Chandra Mohan.
Myntra now aims at crossing sales figure of $1 billion in the coming fiscal and will continue to cut down its cash burns with keeping discounting option low. The company also claims to turn profitable by the end of March 2017 with a plan to increase the sale of big ticket items and start charging for deliveries of certain products.
Myntra’s revenue grew 77 percent to Rs 758 cr in 2015 from Rs 427.26 cr in 2014. Despite the revenue splurge, the firm posted a 3X loss to Rs 1, 126.60 cr in 2015 from 386.10 cr in 2014.
Gross sales for 2015 stood at Rs.2,569 cr. In comparison, Jabong posted losses of Rs 454 cr on sales of Rs 811 cr for the year ended 31 December 2014.
Myntra too faced some heat last year after the announcement becoming an app-only platform starting May. The move was criticized by industry pundits and was touted as an anti-consumer and restrictive move.
The company changed its decision to go app-only and re-launched its mobile website in February 2016.