E-commerce major Flipkart has invested ₹414.60 crore in Myntra, its lifestyle and fashion arm, for its expansion.
The fund infusion came from the Singapore holding company via Singapore-based affliate FK Myntra Holdings Pvt Ltd according to paper.vc, a business intelligence platform.
Flipkart is pumping in funds to take on Amazon Fashion, which has already staked its claim as the largest online fashion destination in the country.
While Flipkart Fashions is positioned as a mass-premium brand, Myntra Fashion Brands is in the premium category, with a clear differentiation in its offerings. Fashion as a category is set to overtake electronics, which is currently the largest category, by 2020.
Fashion and lifestyle e-tailer Myntra’s private label portfolio of 13 brands, including, Roadster, HRX, All About You, Mast & Harbour and Dressberry deliver about 23 per cent of its business today.
Myntra CEO Ananth Narayanan had said that the private label portfolio is a key pillar of the company’s strategy to build differentiated offerings.
Myntra expects its private label brands to contribute 35-40 per cent of its business in the next 12 months. The company’s fashion brands business turned Ebitda-positive in June 2017 and the e-tailer is expecting to turn Ebitda-positive at the company-level by the end of the fiscal year.