 "Mukesh Bansal")
Flipkart and Myntra have mostly been talking about gross merchandise value. Mukesh Bansal, CEO of Myntra and head of commerce at Flipkart, talks to Itika Sharma Punit and Digbijay Mishra in an interview about the road to profitability. Edited excerpts:
How do you plan to reach a gross merchandise value of $5 billion?
There are about 30-35 million people who shop online in India and over five years we will see the number going up to 150-200 million. Myntra will continue to hold its leadership as a fashion retailer and continue to differentiate. Fashion will be more than a $100 billion market and 25-30 per cent will be online, serviced by both marketplace and vertical players. Vertical fashion will be about $8-12 billion and our aspiration is to have at least 50 per cent of that.
What funds you are planning to raise?
We are not raising money for Myntra separately. We are raising at the group level.
Are you looking at a number?
It depends on how the market pans out. We have to make sure the differentiation is there and the consumer-first approach continues. Eventually, the goal is to reach profitability.
How will you turn profitable without fresh funds?
It depends on the economic environment and how fast we are growing.
Do you have a deadline to turn profitable?
Myntra will be reaching profitability somewhere around the second half of 2016.
Is profitability the top priority?
Yes absolutely. Myntra will be among the first few e-commerce companies to reach profitability. In the next three years it will be a big thing as e-commerce is also becoming substantially bigger.
Are you looking to cut costs?
Profitability is not going to happen by cutting costs. We want profitability by having a strong market share and a steady business model. We have many initiatives that will contribute, but cost cutting is not the way to reach there (profitability).
How are you addressing loss at the group level?
Flipkart's burn is the smallest, compared to the other two players, say, 50 per cent less than one player and less than half of another.
Do you have an appetite for inorganic growth?
We are not planning any acquisition. Flipkart as a horizontal platform and Myntra as vertical model is a good combination. That is sufficient for us.
Are you looking at multiple Myntra apps?
We will experiment in that area. The app world is going through many transitions.
