Walmart-backed Flipkart has made an investment of $116 million in fashion retailer Myntra, on 25th March according to the regulatory filings made by the company. 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. The ecommerce platform had also infused $143 Mn in its healthcare business Flipkart Health. Within a few days, Flipkart announced the launch of the Flipkart Health+ app for enabling users to access medicines, healthcare products and services across India.
Flipkart’s investment in Myntra comes at a time when the fashion E-commerce platform is facing tough market competition. The fashion platform competes with the companies such as Reliance’s Ajio, Amazon, Snapdeal, Limeroad, Nykaaetc. 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.