Flipkart Raises Myntra’s Annual Budget By 25 Per Cent
In the recent annual budget meet, Flipkart is now eyeing to raise Myntra’s annual budgets by 25%. Myntra which is lead by the E- commerce giant is particularly doing well in the online fashion segment. Myntra has the collection of great fashion apparels with thousands of premium brands offered at lesser and affordable prices.
In the year 2014, Flipkart acquired Myntra for a surprising and massive price of $300 million will look to spend the budget onboarding some medium and small ethnic brands to their online portal. The entire budget would be utilised for setting up small and medium brands at the Myntra’s fashion portal.
However, additionally, Myntra would also to see to it that this additional budget is utilised for technological and product advancements. With new brands coming in, there would be some changes incorporated for developmental purposes.
Myntra also have plans of boosting their profits by reaching a significant mark of sales by the end of the year 2018. Hence, the additional funds will help the brand to be established and to make some changes in order to reach to higher profits. The budget allotted to Myntra will help them to onboard close to four ethnic medium brands to be a part of Myntra’s offerings. Additionally, Jabong.com which was acquired last year by Myntra for $70 million would also be contributing to the profits.
Myntra has a hybrid model which lets them purchase products from other vendors and sell them on their fashion portal for better prices. Likewise, they also provide a platform through which sellers can sell their products using Myntra without having to route it out on E- commerce platforms. Many vendors are now pushing Myntra to make a decision of selling the products directly on their E- commerce platform without having to purchase from third party channels and then selling on the portal.