09.10.2020, 16:07

Flipkart’s Myntra nets $103m infusion from parent firm

“Flipkart-owned fashion retailer
has received a fresh capital infusion of US$103 million from its Singapore-based parent entity – FK Myntra Holdings – ahead of its seven-day-long festive sale,”
ET Tech

FK Myntra Holdings and Singapore-based QuickRoutes International bought over 1 million shares and 97058 shares, respectively at 6427 rupees per share, the report said, citing regulatory documents from Tofler.

The latest capital injection comes just before the company’s festival sale that begins on October 16. Myntra CEO Amar Nagaram expects that over 50% of its sales will come from outside metro and Tier 1 cities, while Tier 2 and Tier 3 cities will gain sales momentum during the festival season. The company also anticipates that its sales will increase by 4x over its “business as usual” overall.

“What we’ve done in the last four months is [to] help our brands get through the low time in the offline space with our omnichannel play. So brands are no longer dealing with unsold inventory – it’s going to be new season merchandising at a very sharp pricing,” said Nagaram.

There have been more investments in the space. Apart from Myntra, US-based ecommerce giant Amazon also invested
US$152 million
last month into one of its India units, Amazon Seller Services, while Reliance Industries’ retail arm Reliance Retail raised
US$5.1 billion
from several investors.