Driven by strong topline, Flipkart-owned Myntra is all set to turn profitable in the current financial year. With 40% market share in online fashion segment Myntra along with Jabong is eyeing to make a margin of 2-3% by end of the current fiscal.
The Bengaluru-based company has surpassed its GMV estimation for the current fiscal as it expected to hit Gross Merchandise Value (GMV) of $2.7 billion. Last year, it projected to achieve GMV of $2 billion.
This year, Q4FY18 (January-March 2018), we will be very close to breakeven. We may be at an EBITDA level of (-)2% to (-)3% but very close to 0. The only difference between the 0 mark (breakeven) and the (-)3% that we might end up at, will be the growth investments we make,” CEO for the combined entity (myntra+ Jabong) Ananth Narayanan told ET.
A couple of months ago, Myntra’s private label and in-house brand had turned profitable. According to the online retailer, its private brands business posted a 5% profit at the EBITDA level in June and turned profitable in following months.
Currently, it has 14 in-house private label brands including HRX, Moda Rapido, All About You among others. HRX by Hrithik Roshan is already a Rs 120 crore brand while Moda Rapido and AllAboutYou said to have crossed Rs 50 crore annual revenue each.
The company is targeting a growth of 60-65% for the next year, however, it’s larger focus is to hit $2 billion GMV in current fiscal with an exit run rate of $2.6-2.7 billion.
Besides online operations, Myntra is also planning to open a new offline store for one of its private labels, Roadster by the end of this year. The company is also preparing to launch its own loyalty programme to keep existing customers on its platform. It claims that soon to be launched loyalty programme will be Fashion-specific and different from existing such programmes in the market.
In September, Myntra won the right to manage international fashion brand Esprit’s offline stores in India.