Myntra, one of the leading online fashion portal in India, which is a part of the Flipkart Group, is likely to acquire stake in another online fashion portal 20Dresses.com
As per the report, the deal is a performance-linked equity investment, where Myntra’s investment into 20Dresses will be tied to the company’s net sales on both Myntra and Jabong, on a year-on-year basis.
The Mumbai-based online fashion retailer is also selling its products on both platforms — Myntra and Jabong. The deal is likely to have been struck sometime between July and August this year, according to the person aware of development.
As revealed by Ananya Tripathi, chief strategy officer and head of sports and international brands at Myntra, the equity investment deal is part of Myntra’s brand accelerator programme.
Myntra’s brand accelerator programme was launched in December 2016. It identifies domestic fashion brands and promotes them on its sales platform. Commenting on this, Ananya Tripathi said:
20Dresses has seen phenomenal traction since its launch on Myntra and Jabong due to its trendy designs, sharp price-points, efficient and scalable supply chain and solid team. Through this partnership, we aspire to build 20Dresses as a leading women’s fashion brand in the country.
However, none of the involved companies have revealed financial details related to this transaction. 20Dresses is a Mumbai-based startup that is focused on women fashion products.
The platform was founded in 2012 by Sumant Kasliwal. It is a members-only fashion platform for women and offers a personalised user interface for every user, showing products based on their preferred fashion styles.