Myntra Turns Profitable In FY24, Revenue Soars 15%

SUMMARY

The startup's revenue from operations stood at INR 5,121.8 Cr in FY24, up about 15% from the INR 4,465 Cr in the previous fiscal year

Myntra cut its expenses slightly to turn profitable in the fiscal. In FY24, Myntra spent INR 5,123 Cr, down 3% from the INR 5,290.1 Cr it spent in the prior fiscal

Being an ecommerce marketplace, cost of materials were the biggest expense head for Myntra. The startup spent INR 1,996.4 Cr under this bucket, down 8% from the INR 2,165.7 Cr it spent here last year

Fashion ecommerce marketplace Myntra turned profitable in the fiscal year 2023-24 (FY24), posting a consolidated net profit of INR 30.9 Cr as against a loss of INR 782.4 Cr in the previous fiscal year.

The profitability came on the back of a bump in Myntra’s topline and slight reduction in its expenses in the fiscal.

The startup’s revenue from operations stood at INR 5,121.8 Cr in FY24, up about 15% from the INR 4,465 Cr in the previous fiscal year. Including other income of INR 51.9 Cr, of which INR 45.6 Cr came by the way of royalty earnings, Myntra’s total income for the fiscal stood at INR 5,173.7 Cr.

Founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena, Myntra operates a marketplace which allows third-party sellers to sell their fashion products to customers. It was acquired by Flipkart for $240 Mn in 2014.

As a marketplace service provider, the startup generates revenue primarily from transaction fees that the vendors pay. Besides, it also earns from logistics services, advertisement services and consultancy services. Myntra has also started selling products under its own label.

Over the past few months, Myntra has been experimenting with shorter delivery timings in a bid to stay relevant amid the quick commerce boom. While it started piloting four hour deliveries in four cities back in September, it launched a 30-minutes to 2-hours delivery feature, “M-Now”, in November.

Zooming Into Myntra’s Expenses

Myntra cut its expenses slightly to turn profitable in the fiscal. In FY24, Myntra spent INR 5,123 Cr, down 3% from the INR 5,290.1 Cr it spent in the prior fiscal.

Cost of Materials Consumed: Being an ecommerce marketplace, cost of materials were the biggest expense head for Myntra. The startup spent INR 1,996.4 Cr under this bucket, down 8% from the INR 2,165.7 Cr it spent here last year.

Employee Benefit Expense: Myntra’s employee cost stood at INR 800 Cr, up 8% from INR 742.5 Cr it spent on its personnel in FY23.

Advertising & Promotional Expenses: It spent INR 1,677.4 Cr in FY24 to promote itself. This marks a 5% reduction from the INR 1,758.8 Cr it spent last fiscal.