16.4myntra epilogue nen 2011
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1© John Mullins 2011
Myntra:What happened?
John W. MullinsLondon Business School
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2© John Mullins 2011
Myntra’s Funding• Series A round
– August 2008– Raised $4 million– From four VCs
• Indo US Ventures: Bangalore• Erasmic: Bangalore• Accel: Bangalore (CaféPress, Spreadshirt)• IDG: Mumbai
– Post-money valuation $9 million
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3© John Mullins 2011
2009: A Change in Strategy
• Internet penetration still modest– Sales below target
• Solution– Seek corporate B2B business in
custom apparel and other gifts
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4© John Mullins 2011
2010: More Funding
• Series B round– July 2010– Raised $13 million– From Tiger Global (New York) and the
original VCs– Post-money valuation $32 million
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5© John Mullins 2011
Why?
• Internet retailing was hot globally• Internet penetration finally taking
off in India• Myntra seen as among the best
management teams in India’s dot-com landscape
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6© John Mullins 2011
Another Change in Strategy
• Tiger brought insights from other investments– Do VCs add value?
• New direction– Lifestyle casual apparel and footwear
retailing
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7© John Mullins 2011
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8© John Mullins 2011
Will Myntra Succeed?
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9© John Mullins 2011
Lessons Learned
• About business plans– No plan is perfect– But the most common pitfalls and
flaws are easily avoided– Most plans are written way too soon
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10© John Mullins 2011
Lessons Learned
• About raising capital– Don’t sweat over writing a “perfect”
business plan– Instead
• Rigorously assess the opportunity• Build a credible entrepreneurial team
– 10 years in Silicon Valley startups for Mukesh
• Achieve some milestones, get customer traction
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11© John Mullins 2011
Lessons Learned• About when to raise capital
– The later, the better– How much of Myntra does Mukesh own?
• Stake was 49% after $200k seed round• Series A dilution 44%: stake cut to 27%• Series B dilution 40%: stake down to 16%
– The longer you can bootstrap, the better! – The more you’ve proven, the better the
valuation!