Flipkart invests $54m in Myntra to fuel India's fashion e-commerce boom

Fashion spending in India is projected to increase by 13.4% YoY in 2024.

Indian e-commerce giant Flipkart invested $54m into Myntra, its fashion e-commerce subsidiary, BMI reported.

The move, announced on 5 March, follows Flipkart's previous investment of $105m in March 2023. Additionally, it came after Walmart, Flipkart's largest shareholder, announced an additional $600m into its Indian investments.

“India is seeing steady growth in consumer spending, particularly fashion and beauty products e-commerce which is supported by growing income levels and urbanisation which feeds into greater domestic consumer consumption,” the report noted.

According to market forecasts, fashion spending in India is projected to increase by 13.4% year-on-year (YoY) in 2024, reaching a total of $165b. The growth momentum is expected to persist over the next five years, with an average annual growth rate of 9.5%, culminating in a total expenditure of $229.4b by 2028.

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Myntra's strategic restructuring, prioritising private labels over in-house brands, has fueled growth in the beauty products segment. 

The personal care sector is also projected to grow by 19.3% YoY in 2024, reaching $30.5b, and is expected to maintain strong growth, reaching $42.5b by 2028.

By 2024, urbanised consumers are expected to make up 36.9% of the total population, rising to 52.8% by 2050, creating a significant market for fashion e-commerce players.