Online fashion retailer Myntra has recorded an 87 per cent jump in its turnover in the fiscal year 2016-17 as compared to previous FY. The Flipkart-owned company has a total turnover of Rs 2,000 crore in the aforementioned period, reveals RoC filing.
While Myntra hasn’t given any loss and profit figure for FY17, its losses stood at Rs 816 crore during the financial year 2015-16.
The spike in sales picked up on the back of growth of its private labels. Industry estimates suggest that private labels contribute 25 per cent of the company’s total revenue.
Last year, Myntra’s private label and in-house brand had turned profitable. The company claimed that its private brands business posted a 5 per cent profit in September 2017.
Driven by strong topline, the company is also projected to turn profitable in the current financial year. With 40 per cent market share in online fashion segment, Myntra is eyeing to make a margin of 2-3 per cent by end of the current fiscal.
Experts opine that private labels are very crucial for online marketplaces to turn profitable as they offer better margin.
Currently, the company 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.
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The Bengaluru-based company claims to surpass 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.
On the lines of Amazon Prime and Flipkart First, Myntra is planning to launch its own loyalty programme soon. Besides pushing in-house brands, Myntra has also been beefing up its relation with well-known brands such as Esprit. The company has won rights to manage international fashion brand’s offline stores in India.
The development was first reported by ET.