Myntra and Jabong to Invest $300Mn | Funds for Flipkart
According to sources, Myntra and Jabong are both set to invest approximately $300 million. In the span of next three years with a view to gain a larger market share. These subsidiaries are part of Flipkart and they aim to triple their GMV to around $4 billion in the coming three years. Funds for Flipkart. Flipkart’s subsidiaries came up with this announcement after Flipkart revealed its plans to be the topmost fashion stop and targeted a GMV of around $1.7 billion by the end of 2019. The companies also planning to triple their consumer base and increase their share. For the domestic online fashion market to about 50%.
Myntra and Jabong to Invest $300Mn in next 3 Years
Ananth Narayanan, who is the CEO of Myntra-Jabong has stated that Myntra is likely to expand its offline presence to around 100 stores in the span of the next two years. It also cut down its losses by around 25% in the previous year. Myntra’s private label businesses which include HRX, Dressberry, Anouk and Roadster have been performing quite well since September 2017. They are able to generate a revenue of about $25 million a month which amounts to around 300 million per year and contributing to about 23% of its total revenue. Myntra has been described as a ‘piece’ by Walmart CEO Doug McMillon representing a good positioning to take leverage of India’s growing middle class and young population.
Walmart to arrange Funds for Flipkart Deal by June 2019
Walmart has been busy arranging funds, for its acquisition of Flipkart, and has set a target for June 7, 2019.
Cited as the biggest e-commerce trade deal in the world till date. The move is being claimed to be harmful to trade competition in the country. With the Confederation of All India Traders. And the Competition Commission of India protesting the execution of this deal.
Walmart sold $16 billion worth of bonds and shares back in June to acquire 77% of Flipkart. The deal has evoked protests and agitations across the country. With many trade unions and groups threatening consequences does the government allow the deal to go through.
More ref:- Buisness Quora