 "Operationally profitable for two quarters: Fashion platform Myntra")
Flipkart-owned fashion platform Myntra has said that it has been operationally profitable since October last year.
Citing its growing customer base, domestic and international brand associations and tech-led innovations, Myntra said on Tuesday that its marketplace entity has been EBITDA (earnings before interest, taxes, depreciation, and amortization) positive since the last quarter of calendar year 2023.
It makes Myntra operationally profitable for two quarters running, something the firm has never achieved before.
The company, however, didn’t reveal any numbers related to its profitability.
Myntra reportedly saw its revenue from operations jump by 25 per cent from Rs 3,501 crore in FY22 to Rs 4,375 crore in FY23. But its losses widened 31 per cent during the same period from Rs 598 crore to Rs 782 crore. This was on the back of higher expenses during the fiscal year.
The firm saw its total expenses increase 26 per cent from Rs 4,207 crore in FY22 to Rs 5,290 crore in FY23. This was due to an increase in employee benefit expenses and cost of raw materials and due to other reasons.
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Myntra is part of the Flipkart Group, which is owned by US retailer Walmart. It competes with Amazon Fashion, Reliance Ajio and other online fashion retailers to tap the fashion e-commerce market of India, which is expected to be a $35 billion by 2028.
“Accomplishing this feat while working in a profitable manner not only speaks volumes about our commitment to solving the beauty and fashion needs of the country but is also a testament to the success of our customer-first approach, ability to invest in the right growth engines and of our financial resilience, which has held us in good stead,” said Nandita Sinha, CEO, Myntra.
The company said that it has been on a strong growth trajectory, growing notably faster than the online fashion market since H2 (second half) of CY 2023, with GMV (gross merchandise value) growth nearing 2X of the market during the recent festive season.
Integral to this market-leading growth has been a 33 per cent surge in Monthly Active Users (MAU), rising from 45 million in 2021 to 60 million by the end of 2023 alongside strong customer growth.
Myntra’s key pillars of expansion include expanding share of wallet in non-apparel segments, a drive in premiumisation in fashion with segments like beauty, international and D2C (direct to consumer) brands.
Other such pillars include geographical expansion into non-metro cities, differentiated offerings for the emerging Gen-Z cohort and expanding offerings for the evolving need states of its premium fashion-forward customer base.
Brands on Myntra have recorded a strong year-on-year (YoY) growth, with the catalogue size on the platform also having grown by over 50 per cent in the last year.
This strong performance is further fuelled by a steady influx of new customers. There is a significant year-over-year GMV (gross merchandise value) growth in the D2C segment at over 80 per cent and Runway Icons, Myntra’s premium ethnic wear proposition at over 100 per cent.
Its beauty segment is growing significantly faster in comparison to the online beauty market in India. The home category saw a notable GMV growth of 50 per cent year-over-year, in February 2024, mirroring the expanding interests of Myntra’s diverse customer base.
Myntra’s tech advancements helped it with notable traction from its customers.
This includes touching 2 million monthly users engaging with new features like MyFashionGPT, Maya and AI Stylist at its peak.
In addition, Myntra has also been constantly scaling its repertoire of international brands and today boasts of over 400 international brands in its portfolio across fashion and beauty. The firm on-boarded 50 international brands on the platform in 2023 and launched a differentiated app-in-app proposition for Gen-Z Fashion, FWD, with over 500 brands. Demand for Gen-Z Fashion on FWD witnessed over 150 per cent YoY GMV growth in CY23.
Elements:
Myntra said that its strong market position has enabled its marketplace entity to turn EBITDA positive since the last quarter of CY 2023.
Growing faster than the online fashion market since H2 of CY 2023.
GMV growth nearing 2X of the market during the recent festive season.
Saw 33% surge in Monthly Active Users (MAU), rising from 45 million in 2021 to 60 million by the end of 2023 alongside strong customer growth.