Latest news with #Flipkart-owned
Indian Express
5 days ago
- Business
- Indian Express
Myntra in trouble? ED issues Rs 1,654 crore FEMA notice for FDI violation
Flipkart-owned fashion e-commerce giant Myntra is facing heat from the Enforcement Directorate, India's financial crime watchdog, for violating the country's foreign investment rules. Myntra, one of India's largest fashion e-commerce brands, has received a notice from India's financial crime watchdog for allegedly violating the country's foreign investment rules. On Wednesday, July 23, the Enforcement Directorate stated that Flipkart -owned e-commerce platform Myntra received foreign investment worth Rs 1,654.35 crore by claiming to operate a 'wholesale cash and carry' business, but instead sold most of its goods to Vector E-Commerce Pvt Ltd, which then sold them to the consumers. According to the Enforcement Directorate, Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd belong to the same group of companies.
Indian Express
6 days ago
- Business
- Indian Express
Myntra under ED lens: Indian government issues Rs 1,654 crore FEMA notice for FDI violation
Myntra, one of India's largest fashion e-commerce brands, has received a notice from the country's financial crime watchdog for allegedly violating the country's foreign investment rules. On Wednesday, July 23, the Enforcement Directorate stated that Flipkart-owned e-commerce platform Myntra received foreign investment worth Rs 1,654.35 crore by claiming to operate a 'wholesale cash and carry' business, but instead sold most of its goods to Vector E-Commerce Pvt Ltd, which then sold them to the consumers. According to the Enforcement Directorate, Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd belong to the same group of companies. India has a policy that prevents foreign companies from participating directly in wholesale business and making direct sales to consumers, in order to protect local retailers. While foreign-owned e-commerce platforms like Myntra, Amazon and Flipkart are allowed to act as marketplaces to connect buyers and sellers, government policies prevent these giants from stocking goods or selling them directly to consumers. In the last few years, the Walmart-backed online fashion retailer has been expanding its quick commerce market and controls almost half of India's fashion e-commerce market. It is also venturing into social commerce by partnering up with influencers and celebrities on platforms like Instagram, Amazon Live and YouTube. In a statement to Reuters, Myntra said that it is yet to receive any documents related to the case from Indian authorities and that it remains 'fully committed to cooperating with them at any point of time.' 'At Myntra, we are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity', a company spokesperson added. Founded in 2007, Myntra, the Bengaluru-based e-commerce platform, was acquired by Flipkart in 2014 and later bought by US-based Walmart as part of its Flipkart acquisition. The Confederation of All India Traders (CAIT) has emphasised that foreign-backed online retailers have been violating FDI norms and has urged the Indian government to take action against malpractices like deep discounting and predatory pricing. Myntra isn't the first e-commerce giant to face heat from India's financial crime watchdog. Last year, an Indian antitrust investigation found that foreign-backed e-commerce platforms – Amazon and Flipkart have been violating local laws by giving preference to select sellers and colluding with smartphone makers like Samsung and Xiaomi by restricting their products to their websites, which breaches the country's antitrust laws. Similarly, food delivery platforms like Zomato and Swiggy are also facing heat for breaching competition laws by giving select restaurants preferential treatment. The Enforcement Directorate has also asked Walmart-backed Flipkart to explain why the e-commerce platform should not be slapped with a Rs 11,656,47 crore fine for violating its foreign investment laws.
Time of India
6 days ago
- Business
- Time of India
ED files Fema case against Myntra for Rs 1,654 crore FDI violation
Myntra is accused of misusing the wholesale 'cash & carry' route to conduct multi-brand retail trading (MBRT), which is restricted under the FDI policy. The ED found that Myntra received foreign direct investment (FDI) claiming it was for wholesale trading, but routed the majority of sales through Vector E-Commerce Pvt Ltd, a related-party entity that sold directly to consumers. This structure was allegedly used to bypass norms by bifurcating B2B and B2C operations, while actually engaging in retail trade. As per the FDI policy amendments dated April 1, 2010, and October 1, 2010, only 25% of wholesale sales can go to group companies — a cap Myntra allegedly breached. The ED concluded that Myntra and others contravened Section 6(3)(b) of Fema, along with the consolidated FDI policies, resulting in a total contravention amounting to Rs 1,654.35 crore. The Enforcement Directorate (ED) has filed a complaint under the Foreign Exchange Management Act (Fema), 1999, against Flipkart-owned fashion etailer Myntra, and its related entities for allegedly violating foreign investment rules to the tune of Rs 1,654.35 crore.
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Business Standard
10-07-2025
- Business
- Business Standard
For Cleartrip, it's more chat, less bots as customer care workforce expands
Cleartrip veers towards higher people engagement in periods following AI crash, West Asia crisis premium New Delhi Listen to This Article Following the Air India crash and flight disruptions that ensued following the West Asia crisis, online travel aggregator Cleartrip has raised the number of customer care executives to more than 4,000 inbound queries on a daily basis. 'Call and chat volumes doubled almost overnight. Social platforms were flooded with over 5,000 DMs (direct messages) a day, turning social into our new frontline. Most customers were anxious about cancellations and refunds, with over 4,000 related queries pouring in every day,' Priyaah Sundaraam, vice-president — head, customer experience and fulfilment, told Business Standard. The Flipkart-owned travel tech firm doubled down on addressing
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Business Standard
28-05-2025
- Business
- Business Standard
Myntra raises ₹1,062 cr from parent firm in fresh capital infusion
The Flipkart-owned platform eyes growth in Singapore and beyond, posts Rs 30.9 crore profit in FY24, and readies for its flagship sale event starting May 31 Peerzada Abrar Listen to This Article Myntra, the online fashion platform owned by Walmart-backed Flipkart Group, has secured Rs 1,062.5 crore in fresh funding from its Singapore-based parent entity, FK Myntra Holdings Pvt Ltd, according to regulatory filings reviewed by business intelligence platform Tofler. As part of the capital infusion, Myntra issued approximately 1.94 million shares, each with a face value of Rs 1 and a premium of Rs 5,465.23 per share. The development comes at a time when the company is scaling up its operations in India and overseas. Myntra recently forayed into the international market with the launch of Myntra Global, marking its first
