1 © john mullins, 2011 myntra: what happened? john w. mullins london business school
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National Entrepreneurship Network 3© John Mullins, : A Change in Strategy Internet penetration still modest – Sales below target Solution – Seek corporate B2B business in custom apparel and other giftsTRANSCRIPT
1© John Mullins, 2011
Myntra:What happened?
John W. MullinsLondon Business School
National Entrepreneurship Network 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
National Entrepreneurship Network 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
National Entrepreneurship Network 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
National Entrepreneurship Network 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
National Entrepreneurship Network 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
National Entrepreneurship Network 7© John Mullins, 2011
National Entrepreneurship Network 8© John Mullins, 2011
Will Myntra Succeed?
National Entrepreneurship Network 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
National Entrepreneurship Network 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
National Entrepreneurship Network 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!