Myntra shores up $103 mn from parent entity ahead of festive sale
Flipkart owned fashion and lifestyle platform Myntra has raised slightly over $103 million (Rs 755.93 crore according to current exchange rates) from Singapore registered parent entity FK Myntra Holdings and Singapore registered logistics arm of Flipkart, QuickRoutes International, according to regulatory filings.
Of the total amount, Rs 693.56 crore comes from FK Myntra Holdings in an infusion ahead of the festive season sale Big Fashion Festival, which is set to begin from October 16, along with Flipkart’s annual Big Billion Days sale.
The development was first reported by The Economic Times.
Myntra expects the event to register a two-fold growth in sales compared to the previous year when the event was referred to as Big Fashion Days, according to a statement.
“We are expecting to witness stronger sentiments to shop for fashion online, especially in tier 2 and 3 cities and towns which will be a key focus area for us this time around,” Amar Nagaram, CEO of Myntra said in the statement.
According to a report published by management consulting platform Redseer, fashion as a category is likely to do well during the online sale due to aggressive discounts, as well as an increase in the number of social gatherings, post lockdown period.
Walmart backed Flipkart, which is also the parent entity of Myntra, has been on expansion mode, especially in delivery infrastructure ahead of the festive season sale. The company has announced adding 3.4 million square feet across its supply chain assets, apart from 3000 facilities to expand its last mile reach especially in the tier three cities.
On the backend, Flipkart is also cashing in on the demand from retail outlets for festive sales through its Flipkart Wholesale vertical which sells apparel and footwear across 16 cities and a network of 10,000 resellers. The business to business platform was launched through the acquisition of Walmart’s India business.