While a majority of vertical-focused online fashion platforms have been struggling to gain a firm foot, Myntra is accelerating its revenue as well as reducing losses. With a total revenue of Rs 2,000 crore, the Walmart-owned company had shrunk losses by 25 per cent in FY17 as compared to the previous financial year.
Myntra has posted a loss of Rs 655 crore in FY17 in contrast to the previous fiscal, reveals fresh RoC filings.
The spike in turnover was triggered by the growth of its portfolio of 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 including Roadster, HRX, Anouk, and Dressberry posted a 5 per cent consolidated profit in September 2017.
Despite a reduction in loss, the company total expense ballooned to Rs 2,667 crore in FY17. Importantly, the advertising cost had jumped to Rs 289 crore from Rs 181 crore in the previous fiscal.
Along with aforementioned portfolio, the company has 14 in-house private label brands. 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 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.
With a combination of strong topline and sound unit economics, the company is also projected to turn profitable in FY18. 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.
Meanwhile, Myntra is also planning to open a new offline store for one of its private labels, Roadster soon. Similar to Amazon Prime and Flipkart First, Myntra plans own loyalty programme.
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 loss figure was first reported by ET.