Accel, Tiger to pump $25 mn more into Myntra
The two American funds are infusing growth capital after buying initial stake with early stage financing, said at least two sources directly involved with the process. The same two investors, the most ardent backers of the Indian e-commerce story, pumped over $100 million into Flipkart a few months ago topping up their seed investments in the country's largest online retailer.
When contacted by TOI, Myntra's co-founder Mukesh Bansal denied he had closed any fund raise and said the company was in no need of cash for next 10 to12 months. The online retailer's latest fund raise highlights the growing need for cash in an evolving industry with a heavy burn rate. Myntra has so far raised $38 million, excluding the latest round of funding.
Crosstown rival-Flipkart started as a bookseller but has now diversified into selling toys and beauty products with daily shipments of over 40,000 and has raised in excess of $160 million till date. Myntra's deliveries crossed 8,000 and is now tracking a $100 million revenue in financial year 2013.
The Bangalore-based online retailer raised $21 million in November last year from a clutch of investors, including IndoUS Venture Partners, IDG Ventures India, Tiger Global and Accel Partners. IIT alumni Bansal, Ashutosh Lawania, and Vineet founded Myntra in 2007 which has since then changed its business model from being a portal offering personalized gifting options to a fashion and lifetsyle retailer.
Indian e-commerce industry has been flushed with early stage investments but many players have found it challenging to raise larger funds from bulge bracket investors who pass off bleeding businesses driven by topline revenue and valuations.