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Myntra Reduces Losses by 25% to Rs 655 cr in FY17

The losses stand at Rs 627 crore, shrinking 23% on a standalone basis, the documents show.

Myntra’s three-year-old private label business has been growing strongly and accounts for about 25% of the firm’s overall revenue, according to experts tracking the space. In September 2017, Myntra CEO Ananth Narayanan announced that Myntra’s private label business, which includes brands Roadster, Dressberry, Anouk and HRX, had turned profitable.

This reduction in losses comes even as Myntra Designs, the main entity that runs Myntra’s marketplace, clocked a whopping 94% increase in FY17 revenues at Rs 2,000 crore from Rs 1,031 crore last year, ET had reported in January.

While the firm has been able to reduce losses by a fourth while doubling revenues, costs remain a frontier yet to be tackled. Advertising expenses alone grew almost 59% to Rs 289 crore, weighing heavily on the total expenses for the firm this year, which was higher by 41% at Rs 2,667 crore.

Myntra did not respond to email queries sent by ET until the time of going to print. In a bid to rein in rising costs, especially in a year that saw parent Flipkart being scooped up by US retailer Walmart in the world’s biggest ever ecommerce deal, Myntra’s board of directors has approved a ‘slump sale’ of its wholesale B2B business to Myntra Jabong India, reflecting that the business did not yield expected financial results for the fashion and lifestyle ecommerce player.

“With a view to realign the business model of the company and to focus on its technology business of operating and maintaining the… marketplace platform, the board of directors… have accorded their approval towards a slump sale of the company’s wholesale B2B trading business, together with all the assets and liabilities attributable to such business, on a going and ‘as is where is’ basis to M/s Myntra Jabong India Private Limited (MJIPL),” said a statement in the financial documents.


This consolidation of its B2B business under one single platform is likely to significantly impact the revenue and cash flows of Myntra not just for FY18 but also the subsequent years, as per the documents.

(https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/myntra-reduces-losses-by-25-to-rs-655-cr-in-fy17/articleshow/64251921.cms)


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