WatBlog Newsletter Archive: WATBlog Update "Myntra.com Gets 5 Million In Funding From NEA-IndoUS, IDG and Accel" from "WATBlog.com - Web, Advertising and Technology Blog in India"

Monday, November 3, 2008

WATBlog Update "Myntra.com Gets 5 Million In Funding From NEA-IndoUS, IDG and Accel" from "WATBlog.com - Web, Advertising and Technology Blog in India"

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"Myntra.com Gets 5 Million In Funding From NEA-IndoUS, IDG and Accel" from "WATBlog.com - Web, Advertising and Technology Blog in India"

Myntra.com Gets 5 Million In Funding From NEA-IndoUS, IDG and Accel

Myntra.com an online marketplace for on demand consumer products like t-shirts, mugs, greeting cards, calendars, keychains and diaries has received an A series round of funding from three venture firms in NEA-IndoUS, IDG Ventures and Accel Partners. The funding shall be utilized for geography expansion (they have recently opened a noida office) and product portfolio expansion into toys to fashion accessories, sports accessories (Myntra earlier was primarily tshirts and mugs).

With this funding Vani Kola of NEA-IndoUS and Sudhir Sethi of IDG Ventures join the board of Myntra.com. Myntra’s seed funding earlier happened exactly a year ago and was led by Erasmic Ventures (which is now Accel). Over the course of last year it has forged innumerable tie ups right from Ibibo, holidayIQ, chakpak, Indyarocks and cricinfo.com.

We spoke to Mukesh Bansal the Founder and CEO of Myntra.com and questioned him about the following:

1) Who is your target audience and what is the market size?

We are targetting both the Individual and Corporates/Institutions. According to us just the individual alone is a 5000 crores market while corporate gifting is a 2 billion dollars market.

2) What is you current revenue and what kind of growth you expect in the next 3 years?
We have crossed 1 milion - 4crores in revenues and We expect very aggressive growth in multiples of 100% over the next few years.

3) Even with the market slowdown?
Although there will be some slowdown we are pretty small and hence we will be able to hire better and cheaper talent which will compound our growth.

4) Tell us about your distribution strategy and the typical margins in this business
Our Distribution strategy besides for being online is to collaborate with Event organizers, gift shops and distribute myntra collateral material to the end consumer. We shall also install a system at these gift shops for executing the orders placed by consumers.
The Typical margins range from 25% - 60% depending upon number of products ordered and type of product.

5) When do you expect to break even and how long will this fresh round of funding last?
It will take us 18 months to break even and we expect this funding to fund our growth for another two and a half years.