Jabong, Myntra aims combined GMV of $1.4-1.5 billion

By

Maverick Martins

Published
Jun 1, 2017

Indian online fashion retailer Jabong's gross merchandise value (GMV) has gone up by 30%, post merger with Myntra, with their combined GMV touching $1 billion for year ended March 31, 2017, Ananth Narayanan, CEO of Myntra and Jabong said. 

Myntra still leads India's fashion market as 70% of the above combined GMV was accounted for by Myntra, which acquired Jabong in a $70-million deal. 

The management hopes to earn a combined GMV of $1.4-1.5 billion (close to Rs 10,000 crore) and attain profitability by FY19, it plans to trim down on discounts and market aggressively refurbish to achieve this goal.

“We ended March with a gross profit and we aim to end this year with EBITDA profitability,” Ananth Narayanan, CEO of Myntra and Jabong told the Financial Express.

In 2017-18, the management will look to market Jabong’s products aggressively and to invest about 6-7% of the total sales revenue in marketing.

“We will improve margins by cutting discounts by about 4-5%, lowering supply chain costs and reducing returns,” Narayanan added. The contribution of private labels will remain at levels of 30-40% of the total business; currently they contribute around 23%-30% for Myntra and 9%-20% for Jabong. 

In May, the company partnered with Mango for online and offline retailing. 

“Mango is a premium fast fashion brand and we felt this would be a good opportunity for us. We will have 25 stores over a five year period,” Narayanan said.