India’s e-commerce market is currently worth $3.1 billion annually and with its fast-growing middle class, many companies are willing to invest in it. One of India’s biggest e-commerce business, Myntra Designs, recently announced closing a $50 million round of funding. At the same time, Amazon and Flipkart approached the online retailer with an acquisition offer on the region of $200 million.
The round of funding came from four main investors such as PremjiInvest, Belgian-based Sofiana, Accel and Tiger Global.
Myntra is one of the bigger fashion and lifestyle portals in India focusing on both traditional and more western fashion. The retailer aims at providing a hassle free and enjoyable shopping experience to shoppers across India with the widest range of brands and products. Prominent brands include Adidas, Nike, Puma, Catwalk, FCUK, Timberland, FabIndia and Biba.
The funds will be used to continue to invest in Myntra for the next stage of growth as a standalone company, which is on track to have gross merchandise value of $100 million for the current fiscal year. In April 2013 the rate was 100% every six months, and by 2016-2017, Myntra believes that GMV will be $1 billion while Flipkart is projecting a GMV of $1 billion by 2015.
“Interest from Flipkart validates the growth that Myntra is seeing,” said a source close to details of the negotiation to TechCrunch. “[The] board is looking at all options but the fundraise is being closed in any case.”
By Pia Talwar