Myntra acquires majority stake in Hrithik Roshan's HRX
Flipkart-backed Myntra has acquired a majority stake in fitness and sportswear brand HRX, co-owned by Bollywood actor Hrithik Roshan and Exceed Entertainment, it said in a statement.
Myntra said the move will help augment its private label business. HRX will now be able to leverage benefits exclusive to Myntra's in-house brands and use its technology platform to provide better consumer experience.
While the financial details of the transaction are not disclosed, The Economic Times, citing unnamed sources familiar with the development said Myntra acquired a 51% stake.
"I've always been passionate about physical and mental fitness and the changes it brings to everyone's life, and this collaboration is a positive step we have taken towards the change," Hrithik Roshan said in the statement.
Launched in November 2013, Mumbai-based HRX , which is operated by XS Brands Consultancy Pvt. Ltd, is an active lifestyle brand which is into sports and casual apparel, footwear and accessories for both men and women. The company is on track to double its revenues to Rs 200 crore in the current financial year and is planning to go offline in the next financial year. Women and footwear will be the new areas of focus going forward. The brand is sold on both Flipkart and Myntra.
"With customers increasingly looking for fashionable wear choices, the acquisition of a majority stake in HRX will help propel the brand to the forefront of the active lifestyle wear segment" said Rajesh Narkar, brand director and vice-president at Myntra.
The development comes a little less than a month after Mint first reported that Myntra is all set to acquire a majority stake in HRX.
Last month, Myntra agreed to acquire its main competitor Jabong from its parent Global Fashion Group for $70 million (Rs 470 crore) in an all cash deal to create India's biggest fashion e-tailer, ending months of speculation and outbidding several potential suitors including Snapdeal.
The Jabong buyout is expected to help Flipkart control almost 70% market share in India's growing online apparel shopping segment. The acquisition of HRX further strengthens Myntra's position in the online fashion space.
Founded in 2010 by Uday Singh Gauri, Kamal Indur Punwani and Afsar Zaidi, Mumbai-based Exceed Entertainment is a multi-platform entertainment management company.
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