Myntra is India's favorite shopping platform for customers who believe in quality over perfection. When we talk about fashion and online shopping, the first thing that comes to our mind is Myntra. Myntra in its initial days started selling personalized gift products to the largest fashion site in India. Along the journey Myntra acquired a lot of subsidiaries that helped in growing its business.
Myntra - An Overview
- Myntra, an Indian e-commerce fashion company is located in Bengaluru, India. The company was launched in 2007 to sell personalized gift items.
- Founded by Mukesh Bansal along with co-founders Vineet Saxena, and Ashutosh Lawania. In its initial days, Myntra sold on-demand personalized gift items.
- From 2007 and 2010, it mainly operated on the business-to-business model.
- Myntra began selling fashion and lifestyle products and moved away from personalization in the year 2011.
- By the year 2012, Myntra started offering products from 350 Indian and International brands that are more in demand in the clothing market.
Myntra - Business Plan
Myntra earns by following an aggregator model. The main business plan of Myntra is to buy the latest merchandise and selling it to the customers. Buying current season merchandise from several popular and quality brands, and making the product/item available on its website. The main earning of Myntra comes from the commission. Myntra follows the B2C (Business to customer) revenue model to generate revenue and increase its sales.
Before discussing its subsidiaries and acquisitions, let us understand what is meant by Subsidiary.
What is a Subsidiary?
A subsidiary, subsidiary company, or daughter company is a company that is owned or controlled by another company, which is called the Parent company, Parent, or Holding company.
The subsidiary can be a company, corporation, or limited liability company.
When company A owns/acquires more than 50% of the voting stock of another company B, then in such circumstances company B becomes the subsidiary of Company A and obtaining control of its operations.
Myntra - Facts & Figures
- Flipkart acquired Myntra in 2014 for a record-breaking deal valued at ₹2,000 Cr ($280 million).
- At the time of acquisition by Flipkart, Myntra had a total of 1,50,000 products of over 1000 brands, catering to over more than 9000 pin codes in India.
- Ananth Narayanan became the Chief Executive Officer (CEO) of Myntra replacing co-founder Mukesh Bansal in 2015.
- On 10th May 2015, Myntra announced to shut down its website to solely focus on serving its customers through mobile applications starting from 15th May 2015. This decision resulted in failure.
- Acknowledging the failure of the application-only model, Myntra announced to revive its website in Feb 2016.
- Myntra functions and operates independently after the acquisition by Flipkart. Myntra still continues to operate as a standalone brand under Flipkart by solely focusing on fashion-conscious customers.
Myntra - Subsidiaries and Acquisitions
Below are the details of the acquisition and deal dates when the deal got finalized.
|Company Name||Deal Date|
|Online Services Pvt. Ltd.||August 01, 2018|
|Withdraw||April 16, 2018|
|20Dresses||November 29, 2017|
|InLogg||April 19, 2017|
|Jabong||July 26, 2016|
|HRX||July 20, 2016|
|Cubeit||July 12, 2016|
|Fitiquette||April 04, 2013|
|Exclusively||November 09, 2012|
The Important and Deal breaking Acquisition under Myntra are:
Here, we've tried to mention some of the companies acquired by Myntra, their functioning, and operation under Myntra.
The company is located in Sans Francisco. Fitiquette is the world's first virtual dressing room platform that enables online shoppers to virtually try before they buy option. It provides an online shopping experience that is very similar to the offline model like buying from the stores.
The technology used in Fitiquette shows virtual mannequins based on the body types of the users. This can further adjust the specific measurements of the users based on their body until it closely mirrors their own. The unique thing about this technology is that the clothing chosen is represented as the best fit based on a series of measurements. (Example. S, M, L, XL).
Thus, the technology uses machine intelligence enabling it to offer a true-to-size, visual fitting experience. Fitiquette uses a patented technology that gives users a 360-degree view of the fit and drape of a garment based on their own customized selected merchandise.
Myntra owns the fashion brand Roadster, Myntra's outdoor lifestyle brand which was launched in December 2012. It generates close to 7% of the total sales.
Myntra's lead designer for the Roadster brand is the famous Vanni Lenci. Roadster has launched an all-new licensed Roadster MotoGP collection. It is the first Indian brand to enter into an exclusive collaboration with the world's premier motorcycling championship, MotoGP on Aug 18, 2016.
Pretr Online Services Pvt. Ltd.
Pretr Online Services Pvt. Ltd. is India's first-ever end-to-end omnichannel platform for retail. Pretr (prettier) was launched in 2016 by two technology executives Bhavik Jhaveri and Ankur Joshi. Pretr is currently operating from Mumbai, India.
Pretr is a marketplace that provides a seamless shopping experience to customers. It is an efficient selling platform to Fashion & Lifestyle Retailers which include Esprit and Mango. Myntra's own private labels such as HRX and Moda Rapido uses Pretr’s technology platform. This technology platform helps retailers with a bunch of services, including order management and store analytics.
Xerion Retail Private Limited, also popularly known as Jabong, was a private company that was located in Gurgaon, Haryana. It was launched on 23 September 2011. It was classified as a private limited company. Jabong operated only on online fashion and lifestyle stores. It sold numerous products ranging from clothing, bags, shoes, sunglasses, jewellery, watches, and many more.
Jabong was acquired by Flipkart in July 2016 through its eCommerce unit Myntra for $70 million. Flipkart formally shut down Jabong in February 2020 to shift focus completely on its premium clothing platform Myntra.
Witworks Consumer Technologies Pvt. Ltd.
Witworks Consumer Technologies Pvt. Ltd. is a consumer technology company operating and serving customers across India. Witworks is a maker of wearable devices to strengthen its technology team. The company manufactures wearable products like connected smartwatches, smart shoes, and intelligent clothing with biosensors.
Myntra has kept its image in providing quality products and merchandise. Myntra has always focused on quality with perfection and has kept a steady customer service. Its business is well-maintained which has to lead to the first click to an online fashion destination. Myntra bought Bengaluru-based startup Witworks in April 2018.
HRX is a 5-year-old brand and platform based on a life philosophy to keep pushing. HRX is India's first celebrity brand that was founded by Hrithik Roshan who is also the brand ambassador for HRX. It is also India's first homegrown brand that solely focuses on the sports and active lifestyle space. The brand was founded by Hrithik Roshan and co-founders Afsar Zaidi, Kamal Punwani, and Sid Shah. HRX was acquired by Myntra, the online fashion store owned by Flipkart on Jul 20, 2016. It acquired a 51% stake in HRX.
The company was formed by taking inspiration from Hrithik Roshan’s life. No matter how big adversity, it can be overcome with perseverance. It was created to inspire and guide billions of people. HRX main aim is to help people achieve their fitness goals. HRX is a mission that helps us enable and support people to be the fittest, happiest, and most confident version of themselves.
Myntra - Other Acquisitions
- Myntra acquired Mobile app development company Native5 in April 2015 in order to strengthen and expand Myntra’s mobile technology team.
- Acquired mobile-based content aggregation platform Cubeit, for strengthening its technology team in July 2016.
- Myntra partnered with the Ministry of Textiles to promote the handloom industry in October 2017.
- Acquisition of InLogg, a city-based technology platform that provides end-to-end logistics solutions for the e-commerce sector in October 2017.
Myntra - Major Investors
Some of the Major investors and Venture capital firms investing in Myntra are:
- Accel Partners
- New Enterprise Associates
- Tiger Global Management
- Kalaari Capital
- IDG Ventures India
Myntra is India's favorite shopping destination where quality meets perfection. If you are the one who wants to explore more before buying, want quality products over price, and looking for well-designed products, then Myntra is the best option for you. Myntra has a huge variety of brands. You don't need to worry about the quality of the products. As Myntra only focuses on quality and authentic products. The products go through a quality check where the products are thoroughly checked. Myntra's revenue model is B2C (Business to customer). All the products are only available on Myntra's platform. The products are genuine and are directly collected from the merchandise stores. Enjoy shopping from Myntra.
Myntra is owned by which company?
Myntra is owned by Flipkart. Flipkart is Myntra's Parent Company.
Does Myntra sell fake products?
No, Myntra does not sell counterfeit products at all. Myntra is an aggregator and seller of products. If someone gets a bit downgraded product from any of the leading brands, consider it as the brand's product only.
Is Myntra good for clothes?
If you are the one who wants to explore more before buying then Myntra is the best option for you. Myntra has a huge variety of brands.
Why Myntra is expensive?
The one things great about Myntra is - the variety and size availability. They are also the market leaders and that's perhaps the only reason for the pricing. People do buy at Myntra without even looking at other Portals.
Is Myntra profitable?
Myntra Designs revenue up 58% to Rs 1,719 crore, losses increase by 38% Walmart-owned online fashion retailer Myntra Designs Private Limited reported its revenues for the financial year 2019-20 as Rs 1,719 crore, a 58% jump since the last financial year.