Bangalore-based custom gifts company, Myntra Designs has raised $5 million for expansion plans under Series A funding from IDG Ventures India and NEA-Indo US ventures. For Myntra, over 60% business comes from Corporate users and the company plans to expand more in this sector. Rest of the sales comes from online customers and the company expects an increase after the introduction of new products.

Mr. Mukesh Bansal, CEO, Myntra said that the company will expand product range and will enter new markets during the expansion phase. Mr. Bansal, B. Tech Computer Science from IIT Kanpur has decent experience of working in firms like Nextag, newScale and eWanted. The company expects some pressure on sales due to economic crisis, but the management hopes to reach the fiscal sales targets.

Myntra Designs is currently operating from Bangalore and New Delhi. During the expansion phase, the company will open 10 more branches across the country.

Myntra managed to sell merchandise over Rs 4 crore. The company claims that major revenue boost comes during festival season and October has been the best month so far. The company sells products online and payments are managed by CCAvenue.

Major competitors include Snapfish (HP owned business having decent market share in printed merchandise), Printo (backed by SeedFund and Sequoia Capital) and Zoomin (another web-based venture offering good discounts and free prints for new members). Myntra may face major competition from Snapfish, as the HP backed venture has advantage of big brand. The company has offered major discounts during festival season.

Mr. Sudhir Sethi, CMD IDG Ventures India and Ms. Vani Kola from NEA-IndoUS Ventures will join the board. Mr. Sudhir has held positions at Venture Infotek, Infotech Enterprises, Jobstreet, Webvision and Webdunia.