Myntra explores funding options to raise Rs 300 cr

Online fashion platform Myntra is looking at raising Rs 300 crores and is exploring

offers from two competing groups of investors. These are: Premji Invest led by Wipro Chairman Azim Premji's family along with L Capital Asia the private equity arm of global fashion retailer LVMH Group and Sofina, a Belgium-based investment firm.

Experts say, Myntra is in a position to attract valuations of over six times of its revenue. The apparel e-retailer recorded sales worth Rs 212.4 crores in fiscal 2013 when it reported a loss of Rs 134.7 crores after tax. In fiscal 2014 Myntra is looking at a turnover of Rs 800 crores and expects to turn profitable by the end of this year.

Earlier, Myntra had raised about Rs 470 crores in multiple rounds, mainly from Tiger Global and Accel Partners, who are expected to be a part of the latest round of funding. Kalaari Capital and IDG Ventures were two early investors in the firm.

Experts say investor interest is quite high in online fashion retailing. Myntra’s current round of funding is happening around the time when Flipkart has introduced its own fashion brand called Flipped having a range of men's apparel and footwear. Flipped’s portfolio will soon be expanded to cover other categories. As per the industry estimates, branded apparel attracts up to 45 percent margins and private labels are able to bring in even higher margins of about 60 percent. For Myntra this segment contributes about a fifth of its total revenue, with fresh funds coming in, the company could now focus on expanding its fashion portfolio.