Flipkart’s fashion division Myntra, which reported a loss of R740 crore for the previous financial year, is planning to enter the United States market shortly, and has set up a subsidiary, Myntra Inc, in the US for this purpose.
Myntra had reported losses of R173 crore in FY14. The widened losses, of more than four times, are pushing Myntra to look at overseas opportunities.
Its FY15 revenues of R758 crore, however, showed a steady growth from R427 crore recorded in the previous year, according to filings with the RoC.
Myntra in a recent press conference said it wanted to achieve profitability by FY17, and was hence looking to slash discounts. It aims to achieve a GMV of $1 billion by 2016.
The company had clocked $800 million in annualised GMV in January.
In October, it had claimed an annualised GMV of $500 million. To achieve its stated GMV and attain profitability, Myntra has set up a team that has been suggesting new ways to cut costs in the supply chain system by 5%.
“Since the last quarter, we stopped blindly offering discounts. Rather, we became intelligent about it and took the help of technology to figure out what discount can be given to which product seeing its price and demand. We don’t want to be a discount-led platform but a mass premium player,” said chief executive officer Ananth Narayanan.