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’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.
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: Also, visit the 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 |
| FY22 | Rs.35.01 billion |
| FY21 | Rs.2,407 crores |
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.
| Year | Logistics Services (INR billion ) | Marketplace Services (INR billion ) | Advertisement Services (INR billion ) | Other Services (INR billion ) |
| FY22 | 16.1 | 14.98 | 3.45 | 0.48 |
| FY21 | 13.59 | 7.82 | 1.95 | 0.39 |
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
Apart from witnessing a 45.5% increase in its revenue in FY22, the company has seen a substantial increase in its losses.
| YEAR | LOSS | |
| FY23 | Rs.782 crores | 31 % increase from FY22 |
| FY22 | Rs.597 crores | Observed a 39% of increase in losses |
| FY21 | Rs.429 crores |
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
| YEAR | EXPENSES |
| FY22 | Rs.4,207 crores |
| FY21 | Rs.2.891 crores |
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.
Financials for the year FY23 are not publicly disclosed yet by the company.
| Year | Logistics Cost | Advertising & Promotional Cost | Manpower Cost | Other Services Cost |
| FY22 | 1,680 | 1,298 | 129 | 425.2 |
| FY21 | 1,066 | 768 | 93.7 | 391.9 |
Myntra has its most expense increase from logistics, advertising and promotional costs. Myntra’s expense increased in its various services, be it the manpower cost or the other services cost.
Is Myntra Profitable?
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
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. The company is yet to disclose their FY23 stats, that could help better in determining the profitability of the company.
