Myntra bags $125m from its SG-based parent

Myntra Design, the Indian fashion ecommerce platform owned by Flipkart, has raised 1,062.5 crore rupee (US$125 million) from its Singapore-based parent, FK Myntra Holdings.

The funds were raised through the issuance of 1,943,753 equity shares at 5,466 rupee (US$64) each, as per a regulatory filing.

This comes after Flipkart’s earlier investment of US$81 million into Myntra’s holding entity in Singapore.

Myntra, acquired by Flipkart in 2014 for US$240 million, posted a profit of 30.9 crore rupee (US$3.6 million) in FY24, bouncing back from a 782.4 crore rupee (US$91.6 million) loss in FY23.

In November 2024, Myntra entered quick commerce with its M-Now feature, offering delivery within 30 minutes to 2 hours.

🔗 Source: Entrackr

🧠 Food for thought

1️⃣ Myntra’s remarkable financial turnaround reveals shifting e-commerce priorities

Myntra’s journey to profitability represents one of the most significant turnarounds in Indian e-commerce, transforming from a Rs 782.4 crore loss in FY23 to a Rs 30.9 crore profit in FY24.

This financial reversal comes after years of sustained losses, including a Rs 597 crore loss in FY22 despite 45.5% revenue growth that year 1.

The consistent capital infusions from parent Flipkart, $81 million earlier this year and now $125 million, suggest a strategic shift toward sustainable growth rather than pure market share acquisition.

This investment followed by operational improvements reflects broader industry trends, as major e-commerce players face pressure to demonstrate profitability ahead of potential public listings.

Myntra’s transformation is particularly notable considering its high logistics costs, which previously accounted for nearly 40% of expenditure, and substantial marketing expenses that constituted 31% of total costs 1.

2️⃣ Strategic positioning in India’s rapidly evolving fashion e-commerce landscape

The $125 million investment comes at a critical juncture as India’s fashion e-commerce market is projected to grow from $21.60 billion in 2025 to $98.45 billion by 2032, representing a CAGR of 24.2% 2.

Myntra’s entry into quick commerce with M-Now in November 2024 signals its response to changing consumer expectations, as delivery speed becomes a key competitive differentiator across retail categories.