E-commerce Platform Myntra Achieves Positive EBITDA in Q4 2023

Myntra is an e-commerce platform primarily focused on fashion and lifestyle products. It offers a wide range of clothing, footwear, home décor, and accessories from popular brands in India and globally. Founded in 2007, Myntra has since become a leading player in the Indian e-commerce industry, with a focus on providing a seamless shopping experience through its website and app. Customers can filter their search by various criteria, including category, brand, size, and price, and benefit from personalized recommendations and cashback offers.

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Myntra, the leading fashion ecommerce platform, proudly announces that its marketplace operations have achieved a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) status starting from the fourth quarter of 2023.

According to Myntra, its marketplace has seen a remarkable turnaround in profitability due to several factors. These include its strong presence in the market, fueled by a growing customer base and strategic partnerships with both local and international brands. Myntra also attributes its success to its continuous technological innovations and its appeal to fashion-conscious consumers, particularly those inclined towards premium offerings.

As we approach the end of the first quarter of 2024, there remains uncertainty regarding whether the company has achieved positive EBITDA during this period. Additionally, Myntra extends its services beyond just fashion retail, encompassing logistics, advertising, and consultancy.

Looking back at the financial performance, the fashion ecommerce platform, owned by Flipkart, faced a notable increase in its net loss, soaring over 30% compared to the previous year. Specifically, in the fiscal year 2022-23, the net loss amounted to INR 782.4 Cr. However, amidst these challenges, there was a positive trajectory in operating revenue, which saw a growth of 25%, reaching INR 4,375.3 Cr in FY23 from INR 3,501.2 Cr in FY22.

“We’re thrilled to lead the charge in fashion, beauty, and lifestyle across India, all while achieving remarkable growth in the market. Doing so profitably underscores our dedication to meeting the country’s fashion and beauty demands. It’s a testament to our customer-centric mindset, wise investments in growth, and financial strength, which have consistently served us well,” shared Nandita Sinha, CEO of Myntra.

In the latest update, the company joyfully announced a remarkable 33% increase in monthly active users (MAUs) to 60 million by the close of 2023, a substantial leap from the roughly 45 million recorded in 2021. Additionally, it proudly stated a doubling of gross merchandise volume (GMV) growth, surpassing the general expansion seen in the Indian online fashion market during the recent festive period.

Expressing its strategic aims, Myntra emphasized its dedication to reaching beyond metropolitan areas, delivering unique products tailored for GenZs and esteemed fashion enthusiasts, while also striving to enhance its presence in non-apparel categories. The company expressed its keenness to enhance the premium experience across various segments, including fashion, beauty, and direct-to-consumer brands, with an eye on enriching customer engagement and satisfaction.

Myntra, a prominent fashion ecommerce platform, achieved a positive EBITDA status in the fourth quarter of 2023, attributing its success to market dominance, customer growth, strategic partnerships, technological innovations, and appeal to premium customers. Despite a significant increase in net loss, Myntra demonstrated resilience with a 25% growth in operating revenue in FY23. Additionally, the company experienced substantial growth, with a 33% increase in monthly active users and a doubling of gross merchandise volume. Myntra’s strategic focus encompasses expanding beyond metropolitan areas, catering to GenZs, and enhancing the premium experience for customer engagement and satisfaction.