Myntra is the best fashion/lifestyle e-commerce site in India. It provides all types of clothes, apparels, and even some electronics. The site is doing really well with timely sales and a great collection of fashion items and accessories. And now to help the company expand even better and increase its reach, it has received a capital infusion of $103 million from its parent company.
Details about the capital infusion in Myntra
Fashion e-commerce site Myntra has received a capital infusion of $103 million from FK Myntra Holdings Pvt Ltd. We can safely assume that the company plans to use the funding to provide better deals in its upcoming sale. This is because the investment came shortly after the announcement of the Myntra’s big fashion festive sale.
Regulatory documents about the capital investment and allotments of shares suggest that the company has allotted 10,79,136 shares and 97,058 shares at Rs 6427 per share to FK Myntra Holdings and QuickRoutes International respectively. Even in 2018, the company has received an investment of $176 million FK Myntra holdings.
Myntra’s sale and competition
Amar Nagaram, CEO of Myntra, said, “This festive season is going to be the biggest fashion event, not just for Myntra, but what this country has seen. It’s also going to be the biggest in terms of the selection we’ve put together 9 million styles, across 5,000 brands”. Using the funds that it has recently received Myntra can bring even more deals and work with more brands during the sale.
Marketing is also a place they need to keep their eye. With Amazon’s and Flipkart’s sale on the horizon, they wouldn’t want to lose their market share to these sites. Rumours suggest that Amazon’s sale is going to last a month which might act as a problem for the other two sites.
It is evident that COVID has affected everyone financially, and this is why people might take longer to decide whether they need a product or not. So, having a more extended sale or extremely crazy deals will actually help the companies to grab more customers.
What are your thoughts on all the sites proving so many sales and offers during the festive season? Will you be interested in purchasing products if you get a good offer or are you saving money? Do let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.