Online fashion retailer Myntra said on Thursday that it expects to attain profitability by the end of next fiscal having achieved a year-on-year growth of 80% (October 2015-October 2016). The company said that by the end of this fiscal, it expects a revenue run rate of $1 billion.
Myntra is looking to attain a revenue run rate of $2 billion by the end of next fiscal. Post-demonetisation, the company has seen its digital payments increasing from 5% to almost 50%.
Ananth Narayanan, CEO of Myntra and Jabong, said that the acquisition and turnaround of Jabong and the recently concluded festive season have contributed to this growth and has strengthened Myntra’s position on its path to profitability. “We have over 18 million monthly active users,” he said.
“Myntra, Jabong and Flipkart together have 70% market share in the country today and will continue to grow this by empowering brands and customers,” Narayanan added. The company also plans to launch iconic global fashion labels Hugo Boss and Hackett which will soon be available on the platform. Due to synergies with Flipkart and Myntra, Jabong has been able to turn unit economics positive.
The firm has launched a brand accelerator programme which will aim to promote smaller sellers. It is also leveraging on artificial intelligence and machine learning capability to personalise the customer experience.
“Based on customer behaviour like preferred categories, location and past purchases, the platform will now make recommendations that will be more relevant for its users,” said Myntra CTO Ajit Narayanan.