Thursday 6 August 2015

Myntra looks to get top executives at global firms on board; eyes ten-fold growth in 4 years

Myntra is in talks with top executives at global firms to invite them to join its independent board that it plans to set up as it looks to grow tenfold to become a $5-billion (about Rs 32,000 crore) business in the next four years, two people with knowledge of the matter said. This signals that the company, which was acquired by the country's largest ecommerce company Flipkart last year and does not have a board of its own, will continue to operate independently and have its own growth ambitions, they said. Myntra, which turned mobile apponly retailer, is managed by Flipkart cofounders Sachin and Binny Bansal along with Mukesh Bansal, the cofounder of Myntra who moved to a larger role at Flipkart after the acquisition last year.

Myntra, which recently appointed McKinsey director Ananth Narayanan as its CEO, will chart its own journey even as it makes use of its parent company's strengths in supply chain and logistics, said one of the persons, who did not wish to be identified.

"After the merger, Myntra's value proposition has sharpened and we are set for long-term growth," said Mukesh Bansal, Myntra's cofounder and head of ecommerce at Flipkart. He declined to comment on the creation of board.

Myntra has crossed $500 million (about Rs 3,200 crore) in gross merchandise value, or the total value of the goods sold by the company, even as vertical-focused rivals such as Jabong and FabFurnish have failed to keep pace with it, industry executives said.

ET had reported in April that Flipkart and Myntra were rolling out plans to leverage common infrastructure, especially in their supply chain which comprises of logistics and warehousing.

For the next 18 months, Flipkart plans to focus on selling more apparel and smartphones, a strategy that renders Myntra critical to its ambitious growth targets. Flipkart, which recently closed a $700-million funding round at a valuation close to $15 billion, is looking to touch $10 billion in GMV, ET had reported on June 29.

"On the desktop, we had really very little chance of beating a Myntra or a Jabong but with an app, the playing field has been levelled," said Sujayath Ali, cofounder of shopping app Voonik. A clutch of new startups such as Wooplr, which operate in the same category, have also raised funds recently.

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