Myntra’s operational profitability soars while losses deepen

Myntra—a Flipkart company—achieved operational profitability with a two-fold increase in gross merchandise value in the final two quarters of 2023. In FY23, the company's revenue increased by 25% to Rs 4,375 crore, but its losses increased by 31% to Rs 782.4 crore. In 2023, the average monthly user base increased by 33% to over 60 million, up from around 45 million in 2021.

The growth was majorly driven by expanding customer base, premiumization, collaborations with domestic and international brands, and advancements in technological integration, the company said. Myntra did not disclose specific EBITDA (earnings before interest, taxes, depreciation, and amortization) numbers.

Founded by Mukesh Bansal, Vineet Saxena, and Ashutosh Lawania, Myntra has a portfolio of over 6,000 brands and it delivers to over 19,000 pin codes across India.

Moving forward, Myntra is strategizing to expand its product range tailored to different user demographics, boost its presence in non-apparel segments, and further enhance its premium fashion offerings by integrating beauty, international brands, and direct-to-consumer (D2C) lines. Additionally, the company aims to extend its market reach to non-metro areas.

In July 2023, Myntra underwent an internal restructuring, resulting in the termination of approximately 50 employees. The restructuring affected roles across various verticals, with a significant impact on the private label business.