Myntra.com to launch own clothesline

Mulls IPO and eyes Rs 500 crore turnover in financial year 2012-13

Myntra.com, a fast growing e-commerce platform for fashion and lifestyle products, is all set to launch its own clothesline within a month's time.

Also, in the next couple of year's time, the company, which now has four investors on board, is mulling the initial public offering (IPO) route to raise funds.

The portal which posted a Rs 80 crore turnover in the last financial year is eyeing a Rs 500 crore turnover by the end of the current fiscal, claimed Ashutosh Lawania, co-counder, head, sales & marketing, myntra.com.

He added that the company is all set to launch its own clothesline which would be exclusively sold through its website in around a month's time.

"There would be multiple brands, depending upon the kind of product and the target consumer, however, each brand would have a subtle influence of the mother brand Myntra," Lawania said.

Going forward, the company, which has four investors on board, is mulling an IPO to offer an exit route to its investors.

"Right now, we do not need to raise any money, and we are good for the next twelve to eighteen months. However, in around two year's time, we might look at the IPO route", Lawania informed. The four investors include global venture capital funds like Tiger Global Management LLC, Accel Partners and IDG Ventures.

Myntra.com makes 8000 transactions per day and sells around 10,000-12,000 items per day. Around 600,000 visitors visit the website everyday. "In India the fashion and lifestyle segment is growing rapidly, clocking a CAGR of around 10-12 per cent. From a current $50 billion market, it is estimated to touch $100 billion by 2015-16", Lawania said adding that internet penetration is estimated to touch 300-400 million users by 2015-16 from a present 120 million users. At least, 50-60 million internet transactors are expected by that time.

Meanwhile, Lawania also said that Ahmedabad ranks among the top ten cities that contribute to business volume for Myntra.com.

Over 500 orders are made from Gujarat every day and apart from Ahmedabad, tier-II cities like Surat, Vadodara and Rajkot too are growing in terms of sales.

"The average order value in Gujarat is higher by 10 per cent compared to any other state", he added.