Online fashion and lifestyle retailer Myntra.com has raised $20 million in its third round of funding led by Tiger Global, bringing the total amount of funding received by the company to $39 million.
“The funding is mainly to continue investing in foundation – to develop the technology platform, the supply chain and building the Myntra brand,” Mr Mukesh Bansal, Founder and CEO, Myntra.com said.
Expand presence
The company, which currently retails only apparel, footwear and accessories from various brands, plans to expand into retailing cosmetics, imitation jewellery and lingerie in a few months, according to the company's co-founder and Head of Sales, Mr Ashutosh Lawania. However, the company plans to remain focused on the fashion and lifestyle segment, Mr Bansal added.
“We currently clock revenues of about Rs 15 crore a month and hope to achieve a turnover of about Rs 500 crore the next financial year and also break-even in the next 12 months,” Mr Bansal said at a press conference today.
“This year will see a lot of e-commerce companies turning profitable and will also see a lot of consolidation,” Mr Bansal said, adding that the coming financial year will see the maturing of the e-commerce industry.
In a market that is growing at over 15 per cent, Myntra is seeing good growth, especially in the Tier 2 and Tier 3 markets, according to Mr Bansal. To meet the growing demand, the company is also planning to establish a warehousing unit in Mumbai, which will be its third after Bangalore and Delhi.
In a market of about 10 million e commerce users, Myntra today has a customer base of over two million. The portal gets five million unique visitors each month. Myntra also receives about 5,000 orders a day, according to Mr Bansal. The company hopes to increase this number to about 5 million and capture about 30 per cent of the e-commerce market.
The company started off in the business of personalization of products, and in 2010, shifted its strategy to becoming a B2C oriented firm, expanding its catalogue to fashion and lifestyle products. Majority of the brands that Myntra retails today are Indian brands but the company proposes to add more international brands to its catalogue by May this year.