Myntra eyes 250% growth, turning profitable this fiscal very likely

By

Isabelle Crossley

Published
Oct 5, 2017

Flipkart’s fashion arm Myntra has announced that it is confident in its ability to turn profitable by the end of the fiscal year and one way it is pursuing this is through an even split between online and offline retail.

In an official statement released on October 5, Myntra stated that it should become a profitable enterprise by the end of the current fiscal year. The CEO of both Myntra and Jabong, Ananth Narayanan, said in a statement: “Still pushing for it, we are on track for January-March 2018, EBIDTA zero and then profits. Offline, I think, will help.”

It is through concentrating equally on the business’ online and offline projects that Narayanan believes is the key to achieving profitability, which is still far off for many booming e-commerce originated companies that spend the majority of their investments on advertising. Previously putting the bulk of their efforts into their online presence, Myntra is now investing heavily in their offline ventures. One of these is their recent brick and mortar store launch for Mango in New Delhi and 25 such launches are planned for the next five years.

Narayanan said about the two platforms they operate on: “I want to make sure the customer experience is the same both online and offline. As we do more of this, we create a platform that can go across brands.” Links between online and offline are also being strengthened. For example, in the new Mango stores, integrated inventories will allow customers to have items unavailable in their local store brought in from another or from online. These innovations have made Myntra confident of 250 percent growth which, if achieved, could indeed see them turn profitable.