Fashion ecommerce major Myntra claimed that its marketplace entity has turned EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive “since the last quarter (Q4) of calendar year 2023”.
“Myntra’s strong market position, owing to its growing customer base, domestic and international brand associations, world-class tech-led innovations and a strong foothold among the premium fashion-forward customers, has enabled its marketplace entity to turn EBITDA positive since the last quarter of CY 2023,” the company said in a statement.
As the first quarter of 2024 is yet to close, there is no clarity on whether the entity is EBITDA positive in the ongoing quarter too. Myntra also offers logistics, advertisement and consultancy services.
The Flipkart-owned fashion ecommerce platform saw its net loss jump more than 30% year-on-year (YoY) to INR 782.4 Cr in the financial year 2022-23 (FY23). Operating revenue grew 25% to INR 4,375.3 Cr in FY23 from INR 3,501.2 Cr in FY22.
“We are pleased to be at the vanguard of fashion, beauty and lifestyle in India, while posting market-leading growth. 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 customer-first approach, ability to invest in the right growth engines and of our financial resilience, which has held us in good stead,” said Myntra CEO Nandita Sinha.
Meanwhile, the company said that it witnessed a 33% surge in monthly active users (MAUs) to 60 Mn at the end of 2023 as against nearly 45 Mn in 2021. It also claimed to have clocked a gross merchandise volume (GMV) growth of nearly 2X compared to the overall growth witnessed by the Indian online fashion market during the last concluded festive season.
Myntra also said that its focus is on expanding into non-metro cities, offering differentiated products to GenZs and premium fashion customers, and expanding share of wallet in non-apparel segments. The company said it is looking to drive premiumisation in segments such as fashion, beauty and D2C brands.
The ecommerce major also gave some insights into the performance of various segments:
- The catalogue size on the platform grew more than 50% in the last year
- D2C segment saw YoY GMV growth of more than 80%
- Myntra’s beauty segment is growing significantly faster in comparison to the online beauty market in India
- Home category saw a notable GMV growth of nearly 50% YoY in February 2024
- Myntra has more than 400 international brands across fashion and beauty segments
- Demand for products on Myntra’s GenZ fashion brand, FWD, witnessed over 150% YoY GMV growth in CY23
- Nearly 2 Mn monthly users engaged with new features such as MyFashionGPT, Maya and AI Stylist at the peak
The announcement came days after Myntra said that it had bagged the franchise rights for the UK’s biggest fashion brand NEXT. The Flipkart-owned major competes with the likes of Reliance-owned AJIO, Nykaa Fashion, and Tata CLiQ.