 "Myntra buys majority stake in Hrithik Roshan's apparel brand")
Flipkart-owned online fashion retailer Myntra has acquired majority stake in apparel brand HRX which is co-owned by Bollywood actor Hrithik Roshan and Exceed Entertainment.
The company did not disclose the financials of the deal or the percentage of stake it now owns in HRX.
The deal is part of Flipkart’s move to grow its dominance in the high-margin online fashion space as rival Amazon plays catch up. Flipkart also acquired fashion retailer Jabong from Rocket Internet for $70 million through Myntra last month.
The acquisition of HRX will help propel Myntra towards its goal of achieving profitability by the end of the year and will lead the company’s offline push. HRX has been available exclusively on Myntra since 2013 and the deal will ensure Myntra earns higher margins on every sale.
“HRX has been one of the top selling brands on Myntra…. HRX is on track to double its revenues to Rs 200 crore in the current financial year and is gearing up to go offline in the next financial year,” said Myntra in a statement.
HRX is one among the top selling brands on Myntra and the company expects it to grow at the same or faster pace than its online platform.
Myntra CEO Ananth Narayanan said that the company would look at a ‘try offline/buy online’ model for its offline stores.
“I’ve always been passionate about physical and mental fitness and the changes it brings to everyone’s life, and this collaboration is a big positive step we have taken towards the change,” said Hrithik Roshan.
Both Hrithik Roshan and Exceed will continue to remain minority shareholders in HRX according to PTI.
