It is rumored that VC firms Accel Partners and Tiger Global Management are investing an additional amount of $25 million in Myntra.com, an online shopping retailer, according to TOI. In addition to the two, Myntra.com has already raised $38 million previously from VC firms like IndoUS Venture Partners and IDG Ventures India. Mr. Mukesh Bansal, co-founder Myntra.com, denied these reports.
So who are the investors reportedly about to pump in more cash in Myntra.com?
Accel Partners is a global venture and growth equity firm. Their focus in India has been on investing in IT and health care opportunities. The company has made headlines for financially backing some of the most successful e-commerce portals in India along with companies like enStage.com, a payment solutions provider and Healthcaremagic.com an online medical help provider in India.
Internationally, Accel Partners is well known for being one of the first investors in Facebook since 2005. Tiger Global Management is US / India based Venture Capital firm who also have bet big time on Indian Ecommerce.
Myntra.com is a popular online shopping portal which was founded in 2007 by three IIT alumni. The company claims that it is the largest online retailer of lifestyle and fashion products. It also claims to be one of the most well funded e-commerce companies in India today. In 2007 Myntra initially sold personalized products like mugs, t-shirts and other accessories. In just about half a decade it now offers more than 200 national and international clothing, footwear and accessory brands. TOI reported that Myntra.com is eyeing $100 million revenue levels for FY2013.
Myntra.com currently competes head to head with other Indian e-commerce shopping portals such as Jabong, Flipkart, Naaptol, Snapdeal, Inkfruit, Yebhi and FashionandYou amongst many others. It offers wares in categories for Men, Women and Kids with sub categories of Clothing, Footwear and Accessories. Amazon.com has recently entered the growing online shopping market in India with Junglee.com and is reportedly planning to scale its operations by 2012-13.
Currently Myntra.com targets a niche category of online shoppers in India as it offers only clothing, footwear and other accessories. The rumored infusion of funds for Myntra could be to strengthen operational facilities including better warehousing or a more efficient supply chain. It could also be for a possible foray into other product categories. Until a formal announcement is made, all we can do is speculate.