Walmart-backed Flipkart has made an investment of $116 million in India's top fashion retailer Myntra, the Economic Times reported citing sources. The development comes days after the e-commerce company announced that it is planning for the US listing next year and has raised its initial public offering (IPO) valuation target of around a third to $60-70 billion.
Flipkart acquired Myntra in 2014 for Rs 2,000 crore. According to the report, the investment was made on March 25. On April 6, Flipkart also entered the digital health business and launched Flipkart Health+, to offer medicines as well as other healthcare products and services.
Flipkart’s investment comes at a time when big brands are heavily investing in the fashion retail business. Last week, Tata group launched the Tata Neu app, which is a one-stop-shop offering a bouquet of services such as payments, content streaming, shopping, travel bookings, and groceries.
Apart from Myntra, the likes of Reliance-backed Ajio, Reliance Trends, Nykaa, Tata Cliq, Westside, and Future group’s Pantaloons are dominating the fashion retail market.
In its biggest deal ever, Walmart acquired a roughly 77 per cent stake in Flipkart for about $16 billion in 2018.