Myntra GMV hit $1 bn mark in July : CEO Ananth Narayanan

By: |
Bengaluru | Updated: August 23, 2016 6:44:22 AM

Flipkart-owned online fashion player Myntra on Monday announced that the company has achieved $1 billion in GMV in July this year, with a year-on-year growth of 70%. The company said this was achieved before it bought its rival Jabong, which it said would be operated independently and as separate brands.

Myntra, as a brand, has also expanded into furnishings and personal care and jewellery segment to increase its reach in the market. While Jabong, which was until now running an inventory-led model, has in the last month shifted its focus to a marketplace model. (Source: Reuters)Myntra, as a brand, has also expanded into furnishings and personal care and jewellery segment to increase its reach in the market. While Jabong, which was until now running an inventory-led model, has in the last month shifted its focus to a marketplace model. (Source: Reuters)

Flipkart-owned online fashion player Myntra on Monday announced that the company has achieved $1 billion in GMV in July this year, with a year-on-year growth of 70%. The company said this was achieved before it bought its rival Jabong, which it said would be operated independently and as separate brands.

Speaking at a press conference here, Ananth Narayanan, CEO of Myntra, said, “In July this year, we became the first fashion online company to hit $1 billion in annualised GMV post discounts. Without Jabong, we now have about 10+ million monthly active users. Also, our full price sales have clocked 2x growth in the last six months while the discounts as a percentage of absolute sale have come down by 10%. This means we now have an opportunity to optimise and reduce the overall level of discounts and increase full price sale in the industry.”

Jabong, the Rocket Internet Group’s flagship company in India, was acquired by Flipkart-owned Myntra for $70 million in an all cash deal in July this year, in the biggest consolidation in the online fashion and lifestyle segment. “We will keep both the brands and they would be run independently. We believe both (the brands) can do more in terms of influencing the market and accelerating growth. With two brands, as a market leader in the fashion segment, it now allows us to think as to how differently we can position in the market and continue to grow,” Narayanan said.

Myntra, as a brand, has also expanded into furnishings and personal care and jewellery segment to increase its reach in the market. While Jabong, which was until now running an inventory-led model, has in the last month shifted its focus to a marketplace model.

“Consumer behaviour is starting to evolve and they are now starting to think of online fashion. Without Jabong, we have 10+ million monthly active users on the platform. By integrating technology with retail, fashion and lifestyle and supply chain, we can cause a great disruption and plan to end this financial year with $1 billion GMV,” Narayanan added.

Myntra has plans to have an offline presence which will create an omni-channel experience for its consumers. The online fashion and lifestyle retailer will open the physical store by the end of this year, according to CEO Ananth Narayanan. Through this proposed move, Myntra joins the ranks of other e-commerce players like Lenskart, Zivame who already have physical presence.

According to a Google India-AT Kearney report, fashion and lifestyle segment is likely to overtake the consumer electronics segment, which currently dominates the Indian e-commerce, by 2020.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.