Myntra Achieves Operational Profitability, Announces Growth Strategies

Myntra, the fashion-focused online marketplace owned by Flipkart, has achieved a significant milestone by becoming operationally profitable in the final two quarters of 2023. This accomplishment coincides with a near-doubling of its gross merchandise value (GMV) during the same period.

Factors Contributing to Success

Myntra attributes its growth to several key factors:

• Expanding Customer Base: The platform has seen a substantial increase in its user base.
• Premiumization: Myntra has strategically expanded its offerings to include more premium fashion items.
• Strategic Collaborations: Partnerships with both domestic and international brands have bolstered Myntra’s product selection.
• Technological Advancements: Integrations of new technologies have streamlined user experience and boosted operational efficiency.

While Myntra did not disclose specific earnings before interest, taxes, depreciation, and amortization (EBITDA) figures, data from startup intelligence platform TheKredible indicates a 25% increase in revenue for FY23, reaching Rs 4,375 crore compared to Rs 3,501 crore in FY22. However, Myntra’s overall losses for FY23 did show a 31% increase, climbing to Rs 782.4 crore from Rs 597.6 crore in the previous fiscal year.

User Base and Brand Portfolio

Myntra boasts a user base that has grown by 33% in 2023, with an estimated 60 million monthly active users compared to 45 million in 2021. The platform offers a diverse selection of products from over 6,000 brands and delivers to a vast network covering over 19,000 pin codes across India.

Looking Forward: Growth Strategies

Myntra has outlined a strategic roadmap for continued growth. Key elements of this plan include:

• Product Diversification: Expanding product categories to cater to a wider range of demographics.
• Non-Apparel Focus: Increasing its presence in non-apparel segments like beauty and lifestyle products.
• Premiumization Push: Further strengthening its premium fashion offerings through collaborations with high-end beauty brands, international labels, and direct-to-consumer (D2C) lines.
• Geographic Expansion: Expanding its reach beyond metro cities to capture untapped markets in non-metropolitan areas.

It is important to note that in July 2023, Myntra underwent an internal restructuring that resulted in the termination of approximately 50 employees. This restructuring impacted various departments, with a particular focus on the private label business.