Flipkart-owned Myntra continues with its brand hunting exercise, as part of its Brand Accelerator program and its latest target is Wildcraft. Myntra is reportedly in talks to take a 5% stake in Wildcraft and in return, Myntra will get exclusive online rights to sell Wildcraft’s range of products on the fashion ecommerce site as well as on other Flipkart-owned platforms.
Bangalore-headquartered Wildcraft, founded by Gaurav Dublish, Siddharth Sood and Dinesh KS, has been in the sportswear and outdoor wear manufacturing and selling business for almost 20 years.
Myntra has already roped in Chemistry and AKS brands under its Brand Accelerator program. The model to be adopted with Wildcraft is also something that the fashion retailer major has already worked on with Mango. Both Myntra and Wildcraft have declined a direct confirmation of the development.
Currently with two manufacturing plants -- in Bangalore and in Himachal Pradesh -- and 160 retail stores spread across the nation, Wildcraft sells rucksacks, shoes, jackets, sleeping bags, tents and hiking accessories.
On its financials, Wilcraft is reported have clocked a turnover of Rs 400 crore for the year 2016-17 and is hopeful of doing Rs 550 crore– Rs 600 crore this year. The company has a target of crossing Rs 1000 crore by the year 2019-2020.
The last time the company raised Rs 70 crore from Sequoia Capital, Wildcraft was valued at Rs 350 crore and thus Sequoia got a 20% stake.
Observers point out that the kind of products Wildcraft makes and sells, the margins are quite decent, upwards of 30-35% and at this juncture Flipkart’s own plans to add higher margin products into its basket fits in with this. Although, on the face of it the arrangement may appear to be loaded in favour of Flipkart, it could end being a win-win for both.