Fashion ecommerce major Myntra has received a fresh funding of INR 1,062.5 Cr (approximately $124 Mn) from its Singapore-based parent, FK Myntra Holdings Pvt. Ltd. The move came through a rights issue where Myntra allotted 19.43 lakh equity shares at a face value of INR 1 with a significant premium of INR 5,465.23 per share. This capital infusion was formalized on April 29, according to filings with the Registrar of Companies (RoC). The development follows multiple funding rounds from Flipkart, Myntra’s parent company, including $81 Mn in November 2024 and another $339 Mn in March 2024. These investments are intended to accelerate Myntra’s strategic growth, both domestically and globally.

Turning Profitable: Myntra’s Financial Rebound in FY24

The recent capital inflow is a strong endorsement of Myntra’s robust financial comeback. In FY24, the company turned profitable for the first time, reporting a net profit of INR 30.9 Cr. This is a stark improvement from its loss of INR 782.4 Cr in FY23. This turnaround can largely be attributed to Myntra’s increased operational efficiency and a 15% rise in revenue, which reached INR 5,121.8 Cr in FY24, up from INR 4,465 Cr the previous year. With profitability now achieved, Myntra is in a stronger position to expand aggressively and compete effectively in the ever-evolving ecommerce space.

Global Aspirations: Entry into Singapore with Myntra Global

This financial boost comes at a time when Myntra is aiming beyond Indian borders. The company has launched Myntra Global, marking its official entry into the Singapore market. The initiative is focused on serving the Indian diaspora in the region, with plans to ship products directly from India using third-party logistics partners. The move is strategic, targeting high-demand festive and wedding wear that resonates with cultural preferences. The Singapore foray is expected to act as a springboard for broader international ambitions, allowing Myntra to test global markets and eventually scale in other regions with significant South Asian populations.

Fending Off New Fashion Rivals in Quick Commerce

Myntra’s strategic funding and international expansion also come at a critical juncture in the Indian ecommerce landscape. Several quick commerce companies like Zepto, Blinkit, and Swiggy’s Instamart are exploring fashion as a new vertical, increasing the competitive pressure on established players like Myntra. In response, the company has been piloting its own quick-delivery service, ‘M-Now,’ in four Indian cities. This service aims to deliver fashion products within two hours, catering to time-sensitive buyers. Apart from big names, Myntra also faces competition from emerging fast-fashion startups such as Slikk and Blip, making the need for innovation and speed more crucial than ever.

Flipkart’s IPO and Strategic Realignments for the Future

The fresh capital raise for Myntra also aligns with broader strategic moves by its parent company, Flipkart. The ecommerce behemoth is preparing for its much-anticipated IPO and is in the process of shifting its legal domicile from Singapore to India. This transition could further integrate Myntra into Flipkart’s core operations and amplify its growth. As Flipkart prepares to enter the public markets, strengthening key verticals like fashion through Myntra becomes essential. The new funding will likely be used not only for expansion and technological upgrades but also to ensure Myntra retains a leadership position amid rising domestic and international challenges.

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Source : inc42.com