Myntra, the fashion platform owned by Flipkart, announced on Tuesday that it has achieved operational profitability since October last year. According to the company, its marketplace entity has been earnings before interest, taxes, depreciation and amortisation (EBITDA) positive since the last quarter of calendar year 2023, marking the first time the firm has achieved this milestone.
While specific numbers regarding profitability were not disclosed, Myntra highlighted its revenue growth, with operations witnessing a 25 per cent increase from Rs 3,501 crore in FY22 to Rs 4,375 crore in FY23. However, losses widened by 31 per cent during the same period, from Rs 598 crore to Rs 782 crore, due to higher expenses, including increased employee benefits and raw material costs.
Part of the Flipkart Group under US retailer Walmart, Myntra competes with Amazon Fashion, Reliance Ajio and other online fashion retailers in India’s rapidly expanding fashion e-commerce market, projected to reach USD 35 billion by 2028.
Nandita Sinha, CEO of Myntra, emphasised the company’s dedication to addressing the country’s beauty and fashion needs while maintaining profitability. She attributed the achievement to a customer-centric approach, strategic investments in growth engines and financial resilience.
Myntra noted significant growth, outpacing the online fashion market since the second half of CY 2023. During the recent festive season, its gross merchandise value (GMV) nearly doubled that of the market. The platform also experienced a 33 per cent increase in Monthly Active Users (MAU), rising from 45 million in 2021 to 60 million by the end of 2023, accompanied by robust customer growth.
The company’s expansion strategy includes increasing its share of wallet in non-apparel segments, premiumisation in fashion with segments like beauty and international brands, geographical expansion into non-metro cities and catering to the evolving needs of its premium customer base. Myntra has seen strong year-on-year growth in its brand catalogue, especially in the D2C segment and premium ethnic wear proposition.
Moreover, Myntra’s tech advancements, including features like MyFashionGPT, Maya and AI Stylist, have garnered significant user engagement, with up to 2 million monthly users. The platform boasts over 400 international brands and launched a dedicated app-in-app proposition for Gen-Z Fashion, FWD, which witnessed over 150 per cent year-over-year GMV growth in CY23.
