Is Myntra Profitable? Uncovering YOY Business Results

Is Myntra Profitable

Who doesn’t like the convenience and offers online shopping platform Myntra offers?  Well, we all like it, the offers, diversified range, Myntra offers. But, is this online shopping giant making profits as it has been operating in this sector for a very long time now. To clear this air of doubt, let’s start exploring about – Is Myntra Profitable? 

Is Myntra Profitable

Myntra, one of the online shopping giants has been operating in this industry since 2007 and offers its best of best services and products to its customers. Myntra has made the online shopping experience a feasible one and successfully making its name in the e-commerce industry. 

Myntra made one of the biggest moves in 2014, when one of the biggest e-retailers, Flipkart announced its merger with e-commerce player Myntra. With this, Flipkart emerged as the key player in the fashion apparels industry and got a platform to exploit a market which was unavailable to them earlier. The deal was worth Rs.2,000 crores ($250 million).

Myntra’s: Uncovering YOY Business Results 

Since its inception Myntra has employed a combination of strategies, partnerships, acquisitions, customer-centric approach, etc. to cater to a wider audience base and emerge as a key and major player in the online fashion industry and contribute to its journey on a successful path.

Myntra's Business Results

Apart from this, the profitability of Myntra is driven by some factors like its revenue generation, losses within the financial years, profit, sales, etc. 

Myntra also makes deals with celebrities and fashion designers to offer exclusive collections. It offers choice from over 500 brands, including both Indian and International brands, for all categories.

Note: Want to know about Myntra competition with other e-commerce giants, like Ajio? To get more information on it and to get more insights of it, visit our article Myntra Vs Ajio.

Revenue Generation of Myntra 

Most of Myntra’s revenue comes from its logistics and marketplace services, however, its percentage may vary from year to year. This Walmart owned company works on an aggregator business model, by which it buys current season lines & merchandise from various brands and makes it available at their platform.  

Myntra, saw an increase in its revenue for the year FY22, which accounts for a 45.5% increase from previous year’s revenue. 

YEAR REVENUE 
FY22Rs.35.01 billion
FY21Rs.2,407 crores
Revenue Generation of Myntra

Note: As Myntra has disclosed its latest year financials, i.e. FY23, the operating revenue grew by 25% to Rs.4,375 crores, and loss widened to 31% leading to Rs.782 crores.

Let’s see the financial breakdown of Myntra’s revenue

Year Logistics Services 
(INR billion )
Marketplace Services 
(INR billion )
Advertisement Services 
(INR billion )
Other Services
(INR billion )
FY2216.1 14.983.450.48
FY2113.597.821.950.39
Breakdown of Myntra’s Revenue Generation

In FY21, Myntra witnessed a 17% in their revenues, while the losses were narrowed down to 42% in FY21. Along with this the expenses for the company have also increased within the years. 

Sales fact – For the current year 2023, Myntra has successfully attracted over a 460 million + customer base during festive season. The demand in sales were primarily from the major cities like New Delhi, Bengaluru, Mumbai & Hyderabad, while around 42% (approx.) of the contribution to the overall count were made by Tier II & Tier III regions. 

Losses Of Myntra 

Another major aspect of the discussion is – Is Myntra Profitable is its Losses. Apart from witnessing a 45.5% increase in its revenue in FY22, the company has seen a substantial  increase in its losses. 

YEARLOSS
FY23 Rs.782 crores31 % increase from FY22
FY22Rs.597 crores Observed a 39% of increase in losses
FY21 Rs.429 crores 
Losses of Myntra

From the above table we can make a clear picture that Myntra saw a 39% increase in its revenue in FY22 as compared to FY21. While in FY22 the company has suffered a certain percentage of losses, for the year FY21, Myntra has reduced its losses by 42%, in the post pandemic era. In FY23, Myntra observed a 31% increase in its losses.

Expenses Of Myntra 

Another major factor that contributes into the discussion of – Is Myntra Profitable? Let’s see the company’s expenses in the below table. 

YEAR EXPENSES 
FY22Rs.4,207 crores
FY21Rs.2.891 crores 
Expenses of Myntra

While having a good number increase in its revenue game, Myntra’s total expenditure cost (expenses) also saw a huge increase of 45.5% from previous year’s expenses. 

Note: Financials for the year FY23 are not publicly disclosed yet by the company.

To get a clear picture of Myntra’s expense increase, let’s see the major factors that constitute Myntra expenditure value & have its expenditure breakdown!

YearLogistics Cost Advertising & Promotional CostManpower CostOther Services Cost
FY221,680 1,298129425.2 
FY211,066768 93.7 391.9 
Breakdown of Myntra’s Expenses

As we can see from the table above, Myntra has its most expense increase from logistics, advertising and promotional costs. Apart from this, the above table reflects Myntra expense increase in its various services, be it the manpower cost or the other services cost.

Is Myntra Profitable?

For now the current financials by the company are yet not disclosed that are vital for declaring its profitability. While, if we look at the FY22 stats, Myntra has observed a good increase in its revenue earnings, following which its losses have also increased for about 39% as compared to its previous year’s. 

Myntra reported a same percentage increase in its revenue earnings and expenses for FY22, of about 45.5%. While the growth of the company over the years constitutes to its strategy, features, customer-centric approaches, new innovations, etc.

Summing Up: The Final Step

The final step of the discussion of – Is Myntra Profitable, encounters its various aspects like revenue earnings, losses, expenses, etc. No doubt with time Myntra has evolved into one of the biggest e-commerce platforms that provides a vast range of products & services, but the company has also faced some losses while witnessing an increase in their stats of revenues. However, the company is expecting small towns to make a slightly more increase in their sales in next 3-4 years.

Myntra Profitability business

The company is yet to disclose their FY23 stats, that could help better in determining the profitability of the company. Till then the FY22 stats can serve as your helping friend in knowing the Myntra’s financials. 

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Published By: Aashita Singh
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