Myntra has seen many positive changes post its acquisition by Flipkart. The latest among these is a spike in its annual budget.
Myntra.com said that its parent company, Flipkart, had hiked its annual budget by a quarter in a bid to bolster Myntra’s position as the country’s largest online fashion retailer. The hike comes amid reports earlier this year that Flipkart intends to cut its annual outlay for Myntra. Ananth Narayanan, chief executive of Myntra that was acquired by Flipkart for $300 million in 2014 said,
“This year we got 25% extra money from the Flipkart board,”
He however declined to specify Myntra’s total annual budge. He further added,
“We will just invest in those brands and that will eventually be run by the entrepreneurs. In addition to our operating budget, our board has asked us to thoughtfully invest more in areas such as technology and brands which will help us continue on our growth trajectory and achieve profitability by March 2018,”
The additional budget will boost Myntra’s chance of reaching its milestone of becoming profitable by March 2018 along with Jabong. com, the rival online fashion portal that Myntra acquired last year for $70 million.
Myntra would use the additional money to upgrade technology and to also invest in 3-4 small to medium ethnic brands to ramp up the company’s ethnic offerings.