YOURSTORY: Myntra Jabong Pvt Ltd gets fresh funds of $176 M
YOURSTORY: The funding infusion also comes at a time when there has been a buzz around Myntra investing in adventure equipment and outdoor gear firm Wildcraft.
Flipkart is ensuring there is no dearth of funding for its fashion powerhouse, Myntra Jabong Private Limited. The fashion arm of Flipkart Group got a huge funding boost in the form of Rs 1,147.8 crore ($176 million) of fresh capital from FK Myntra Holdings Private Limited, Singapore, fresh filings by the company with Registrar of Companies (RoC) revealed. The infusion came this February.
The funding infusion also comes at a time when there has been a buzz around Myntra investing in adventure equipment and outdoor gear firm Wildcraft.
In a detailed interaction with YourStory earlier this year, Ananya Tripathi, Head of Sports and International Brands business and Chief Strategy Officer at Myntra and Jabong, had said the company will focus on a few key areas in 2018 to power growth. These include focusing on the personal care segment in which etailer Nykaa has taken the leadership position, investing in supply chain and logistics, and investing in AI led fashion.
All this means heavy investments, and Flipkart with its almost $4 billion fund raise last year, is in a position to foot the bill. Fashion is among the best margin categories online right now, with margins of 20 percent and more. However, there are challenges ahead. Data put out by advisory firm RedSeer Consulting shows that fashion as a category is not growing rapidly. Fashion accounts for 17 percent of e-tail GMV and is growing at only 18 percent annually. Mobile, on the other hand, is a notoriously low margin segment but is among the fastest growing online categories with growth rate of 51 percent.
Click Here for the complete Article.