Too many variables

Myntra was acquired by Flipkart in 2014, at the now (read: unicorn era) seemingly bargain basement price of around $300 million. That made the Flipkart-Myntra entity a juggernaut in the fashion space, with Amazon India as the only real scale competitor. Then this year Flipkart-Myntra acquired Jabong too, at an even more bargain basement price of $70 million. The combined market share of Flipkart in the fashion and apparel space was then estimated to be in the 75% territory. Fashion is something Flipkart deeply values – both because it has high product margins; deep understanding of merchandising & sales; and because an unassailable lead.


Myntra Designs Pvt. Ltd.

Name as per MCA records

Ananth Narayanan





Accel Partners

Tiger Global

IDG Ventures


Amazon India

What has Myntra been upto, the last year?

2016 was a year of sensible decisions by Myntra. In April it expanded into adjacent verticals Home and Personal Care. In June it restored its website, reversing a decision taken in May 2015 to force all users to its mobile apps. And in July it acquired Jabong, thus extinguishing competition and cementing its leadership in fashion for peanuts ($70 million to Flipkart is exactly that).

In August Mint reported that Myntra had begun the process of diversifying its seller base away from Vector E-commerce Pvt. Ltd. (the entity historically responsible for selling to customers, while Myntra Designs Pvt. Ltd. operated the websites, apps and other front-ends) to newer ones. This was done to comply with the government’s new FDI regulations.

Unfortunately what this means is that 2015 and 2016 will be years where it will be hard for anyone to truly assess Myntra’s private financials. Because it has added or removed too many variables for any meaningful year-on-year comparison – seller diversification; app-only followed by reversal; acquisition etc. What we are presenting is nowhere close to a full picture. Nonetheless, we’ve culled out the highlights from Myntra’s financials and will update it when its erstwhile selling entity, Vector E-commerce, files its own financials too.


Rs 974 crore: equity infusion by Flipkart in 2015-16, up from Rs 313 crore the year before.

Rs 48 crore: What Myntra spent on IT expenses in 2015-16, up 152% over the year ago.

Rs 601 crore: amount invested in Mutual Funds during 2015-16.

0.52%: Myntra co-founder and CEO Mukesh Bansal’s residual shareholding in the company. Down from 35.13% in 2014.

16%: the converted value of one Myntra share equivalent (ESOP) to one Flipkart share equivalent for those Myntra employees who continue to be employees of Flipkart after the acquisition.

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