Indian online retailer of lifestyle and fashion products, Myntra.com, is reportedly set to secure investment from Accel Partners and Tiger Global Management to the tune of $25 million, according to The Times of India citing unnamed sources [1]. The same two American investors recently pumped more than $100 million into Indian e-commerce firm Flipkart.
While the Times of India says that the Myntra co-founder Mukesh Bansal ‘denied he had closed any fund raise,’ when we contacted Myntra representatives, they could not at the moment comment, but did not specifically deny the news either.
Should the rumor be true however, then Myntra would have secured a total of $74 million in investment since it started operations in 2007. This would also be the fourth round raised by the Bangalore-based company as it had previously secured $20 million in February of this year, $14 million in November 2010, and $5 million prior to that.
In addition to all that, here is this interesting speculation on Asian Correspondent that there might be a possible acquisition or merger between Flipkart and Myntra in the investors’ mind. Letsbuy was the main challenger to Flipkart just a while ago, until Flipkart bought Letsbuy for $25 million in February. There are similar traits to that story and Myntra: now both Myntra and Flipkart have the same two investors as well. Interesting, right?
Amidst the rumors, it looks like Myntra is doing very well at the moment. Here is some insight to Myntra’s operational size made by Mukesh Bansal last month:
We currently get around 8,000 orders a day. Since we are exclusively into fashion and lifestyle, we are holding almost 20 to 30 percent market share in this segment. Myntra has been doubling in revenue every five to six months consistently for the past 15 months. We used to average about 4,000 transactions about five months back and today we have doubled this figure. Our average transactions have also grown by over 25 per cent as compared to last year.
Bansal also hopes that his company can come close to being a billion dollar business in the next four to five years.
[Source: Times of India]
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The Times of India did not explicitly cite unnamed sources in the article, but given the size of this investment, we decided it would be responsible to follow up with them, and that’s what we are told. ↩
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