Myntra will invest $300 million in 3 years to triple GMV, say sources

By

Isabelle Crossley

Published
Jul 5, 2018

Myntra- Jabong will invest £300 million (Rs 2,000 crore) over the next three years in order to improve its market share and predicts that this will help its gross merchandise value (GMV) increase three fold, sources said.

The e-commerce retailer Flipkart’s fashion arm, Myntra-Jabong, will invest a large sum of money over the next three years in order to further expand its business, according to sources who spoke to ET Bureau. Myntra-Jabong expects its GMV to reach $4 billion in the coming three years up from its total of $1.2 billion for the 2017/2018 fiscal year.

Along with tripling the GMV, the business also aims to triple its combined customer base from both Myntra and Jabong. After Myntra’s Chief Executive, Ananth Narayanan, announced that Myntra and Jabong together gained 500,000 new customers over the course of its End of Reason Sale (EORS), the business expects that it can take its share of the domestic online fashion market from its current standing at 35 percent to 50 percent.

Myntra acquired Jabong in July 2016 and expects that earnings before interest, tax, depreciation, and amortisation (EBITDA) for both businesses will become positive over the coming three years. The domestic online fashion market currently makes up around five percent of the entire Indian fashion market. This share is expected to continue to grow at a compound annual growth rate (CAGR) of 38.2 percent until 2022.