Myntra is India's largest ecommerce store for fashion and lifestyle products. It was established in 2007 and initially offered personalized products before expanding into fashion and lifestyle products in 2011. In 2014, Myntra merged with Flipkart in a $310 million deal. It has received multiple rounds of funding from investors totaling over $100 million. Myntra's gross merchandise value is estimated at Rs. 2,000 crore per month, valuing the company at around Rs. 14,000 crore based on a comparable public company revenue multiple valuation approach. The company has a mobile app with over 12 million users who on average spend Rs. 1,800 per transaction 5.5 times per year.
Myntra is India's largest ecommerce store for fashion and lifestyle products. It was established in 2007 and initially offered personalized products before expanding into fashion and lifestyle products in 2011. In 2014, Myntra merged with Flipkart in a $310 million deal. It has received multiple rounds of funding from investors totaling over $100 million. Myntra's gross merchandise value is estimated at Rs. 2,000 crore per month, valuing the company at around Rs. 14,000 crore based on a comparable public company revenue multiple valuation approach. The company has a mobile app with over 12 million users who on average spend Rs. 1,800 per transaction 5.5 times per year.
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A brief about Myntra around the web traffic generated and valuation of the firm
Myntra is India's largest ecommerce store for fashion and lifestyle products. It was established in 2007 and initially offered personalized products before expanding into fashion and lifestyle products in 2011. In 2014, Myntra merged with Flipkart in a $310 million deal. It has received multiple rounds of funding from investors totaling over $100 million. Myntra's gross merchandise value is estimated at Rs. 2,000 crore per month, valuing the company at around Rs. 14,000 crore based on a comparable public company revenue multiple valuation approach. The company has a mobile app with over 12 million users who on average spend Rs. 1,800 per transaction 5.5 times per year.
Myntra is India's largest ecommerce store for fashion and lifestyle products. It was established in 2007 and initially offered personalized products before expanding into fashion and lifestyle products in 2011. In 2014, Myntra merged with Flipkart in a $310 million deal. It has received multiple rounds of funding from investors totaling over $100 million. Myntra's gross merchandise value is estimated at Rs. 2,000 crore per month, valuing the company at around Rs. 14,000 crore based on a comparable public company revenue multiple valuation approach. The company has a mobile app with over 12 million users who on average spend Rs. 1,800 per transaction 5.5 times per year.
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Group-5 (SDM1)
Myntra Introduction Myntra is a one stop shop for all fashion and lifestyle needs. Being India's largest ecommerce store for fashion and lifestyle products, Myntra aims at providing a hassle free and enjoyable shopping experience to shoppers across the country with the widest range of brands and products on its portal. The brand is making a conscious effort to bring the power of fashion to shoppers with an array of the latest and trendiest products available in the country. History Established in 2007 by Mukesh Bansal along with Ashutosh Lawania and Vineet Saxena, Myntra was in the business of on-demand personalisation of gift items. It mainly operated on the B2B (business to business) model during its initial years. Between 2007 and 2010, the online portal allowed customers to personalize products such as T-shirts, mugs, mouse pads, calendars, watches, teddy bears, pendants, wine glasses and jigsaw puzzles. Within the initial 3 years, Myntra became Indias largest personalisation platform with more than 50% of the market share. In 2011, Myntra expanded its catalogue to include fashion and lifestyle products and moved away from personalisation. Myntra tied up with various popular brands to retail a wide range of latest merchandise from these brands. Myntra offered products from 350 Indian and International brands by 2012. 2014 saw the merging of Myntra with Indian e-commerce giant Flipkart.com in an estimated deal of 2000 crore (US$310 million). Merger was majorly influenced by two large common shareholders, Tiger Global and Accel Partners.Myntra still continues to function and operate independently to increase its market share from 50 to 70 per cent of the market share.In 2014, Myntra's portfolio included about 1,50,000 products of over 1000 brands ranging from international brands to designer brands and distribution area of around 9000 pincodes in India. In May 2015, Myntra moved on to app-only business model wherein customers can only buy and transact in their site through smartphones. The move came after the site claimed that 95 percent of Internet traffic on their site came mobile and 70 percent sales were generated through smartphones. The move to app-only generated mixed reviews and saw 10% dip in sales initially.
Investments and Source of funding
In October 2007, Myntra received its initial funding from Erasmic Venture Fund now known as Accel Partners, Sasha Mirchandani from Mumbai Angels and a few other investors. In November 2008, Myntra raised almost $5 million from NEA-IndoUS Ventures, IDG Ventures and Accel Partners. Myntra raised $14 million in a Series B round of funding. This round of investment was led by Tiger Global, a private equity firm; the existing investors IDG Ventures and Indo-US Venture Partners also put in substantial amount towards funding Myntra. Towards the end of 2011, Myntra.com raised $20 million in its third round of funding, again led by Tiger Global. In February 2014, Myntra raised additional $50 Million (Rs.310 crore) funding from Premji Invest and few other Private Investors detailed as below
GMV and Valuation
GMV or gross merchandise value for e-commerce retail companies means sale price charged to the customer multiplied by the number of items sold. Myntra (independently) is on course to clock Rs 2,000 crore in sales or gross merchandise value ( GMV) at a current monthly run rate of Rs 300 crore.
There are 2 methods to calculate valuation of a company1. Relative Valuation
This method is to peg the valuation to the value of a listed company on the basis of a comparable metric. 2. Valuation by revenue multiplier method The average revenue multiple that private-equity investors estimate for the tech companies they buy is between 3-5 times. Here we have followed Relative valuation approach As Amazon sells goods worth $2 billion annually i.e. its GMV. Its Enterprise Value (since its a public listed company we can calculate it very easily) currently is $14 billion. Then Myntra whose GMV currently stands at 2000 crore ($320 million), should be valued at 14000 crore($2.25 billion)
Site specific data and traffic
Myntra went app-only in June, has a user base of 12 million who spends an average of INR 1800/ transaction.These customers ,half of whom are from smaller towns, buy goods on an average 5.5 times a year.Myntra witnesses 1.5 million downloads of its app every month.
