Operationally profitable for two quarters: Myntra
Flipkart-owned fashion platform Myntra has said that it has been operationally profitable since last year’s December quarter.
Citing its growing customer base, domestic and international brand associations and tech-led innovations, Myntra said on Tuesday that its marketplace entity has been Ebitda (earnings before interest, taxes, depreciation, and amortisation) positive since the last quarter of calendar year 2023.
It makes Myntra operationally profitable for two quarters running, something the firm has never achieved before. The company, however, didn’t reveal any numbers related to its profitability.
Myntra reportedly saw its revenue from operations jump by 25 per cent from ~3,501 crore in FY22 to ~4,375 crore in FY23. But its losses widened 31 per cent during the same period from ~98 crore to ~782 crore. This was on the back of higher expenses during the financial year.
The firm saw its total expenses increase 26 per cent from ~4,207 crore in FY22 to ~5,290 crore in FY23. This was due to an increase in employee benefit expenses and cost of raw materials and due to other reasons.
Myntra is part of the Flipkart group, which is owned by the US retailer Walmart. It competes with Amazon Fashion, Reliance Ajio, and other online fashion retailers to tap the fashion ecommerce market of India, which is expected to be a $35 billion by 2028.
“Accomplishing this feat while working in a profitable manner not only speaks volumes about our commitment to solving the beauty and fashion needs of the country but is also a testament to the success of our customerfirst approach, ability to invest in the right growth engines and of our financial resilience, which has held us in good stead,” said Nandita Sinha, chief executive officer, Myntra. The company said that it has been on a strong growth trajectory, growing notably faster than the online fashion market since H2 (second half ) of CY23.
This is the first time that any Flipkart group company has been Ebitda positive for two quarters in a row