Myntra designs, the online retailer has gained a capital infusion of Rs 414 crore for its FK Myntra Holding from its Singapore- based subsidiary. According to reports, Myntra has issued 66, 44, 281shares to FK holding as a part of fundraising.
With Flipkart Group companies, this is the fourth fund allocation in the recent weeks. This allocation has resulted positive for the online retailer with a grand total of Rs 6,404 crore. The next step is to acquire Amazon and China’s Alibaba.
As per reports, Myntra is planning to acquire the minority stake of 5% in Wildcraft Company of outdoor gear and sports apparel at Bengaluru. This will be included as a part of Myntra’s brand accelerator program, in which Myntra has-on –boarded brands like Chemistry and AKS.
Recently, the Singapore-based parent of Flipkart has emitted Rs 4,472 crore in its wholesale arm Flipkart India. Flipkart had also invested Rs 1,148 crore with Myntra Jabong Private Limited via FK Myntra Holdings in its business-to-business arm. The Flipkart group is focusing on fashion and grocery for their marketplaces and wholesale arm.
Myntra has successfully created a robust private label business, which now accounts for nearly a fourth of its revenue. Roadster, HRX, Mast & Harbour, Dressberry and Ether are some of its private labels, which had returned a positive EBITDA of 5%, as claimed by the company.