Myntra revenue surges 87 percent to Rs 2000 crore for fiscal year 2016-17

By

Maverick Martins

Published
Jan 29, 2018

India’s top online fashion retailer’s revenue rose 87 percent from the previous fiscal to Rs 2000 crore (approx $314.6 million) for the financial year 2016-17, according to a filing with the Ministry of Corporate Affairs, sourced through data-tracking platform Tofler by Economic Times.
 

Major chunk of the revenue for the fashion firm owned by Flipkart was generated from its trading business which amounted 94 percent of the total revenue while a meagre 6 percent came in from data processing, hosting and related activities and its web portal.
 
The filing did not show any profit or loss numbers, however it is believed that the company managed to cut down on its losses significantly from the Rs 816 crore (approx $128.4 million) it had posted in the financial year 2015-16. Myntra did not respond to queries on the numbers.

The company is eyeing profitability in the current fiscal and has been expanding its product portfolio rapidly foraying into different segment to boost growth. Myntra has also entered the brick and mortar space with its private label Roadster and expected to launch similar stores this year for its other in house brands.
 
In an official statement released in October 5, Myntra had stated that it should become a profitable enterprise by the end of the current fiscal year. The CEO of Myntra and Jabong, Ananth Narayanan, had said, “We are still pushing for it, we are on track for January-March 2018, EBIDTA zero and then profits.
 
To meet its target, Myntra is now investing heavily in their offline ventures and planning to ramp up its physical presence for Mango for which it holds the India license and its private labels.
 
Myntra and its subsidiary Jabong which it acquired in a $70-million deal posted a combined GMV of $1.2 billion for year ended March 31, 2017.
 
Myntra is still the undisputable leader in India's fashion market as 70% of the above combined GMV was accounted for by Myntra.
 
The management hopes to earn a combined GMV of $1.4-1.5 billion (close to Rs 10,000 crore) and attain profitability by fiscal 2019, it plans to trim down on discounts and market aggressively to achieve this goal.