Myntra revenue shrunk by 80% to ₹427 crore in FY18

New Delhi: Myntra Designs Pvt. Ltd, the holding company of online fashion retailer Myntra, reported a net loss of ₹ 151.20 crore in 2017-18 (FY18)—a 76% drop from ₹ 627.70 crore loss reported in FY17, documents filed with the Registrar of Companies (RoC) showed.

Myntra also posted an 80% drop in revenue FY18 as a big chunk of its sales were moved to a new entity that was formed after its acquisition of rival Jabong in 2016. The revenue slump was also attributed to reduction in dependence on a few large sellers.

Myntra Designs reported sales of ₹ 427.74 crore in FY18, according to RoC documents and data sourced from Tofler and Paper.VC. It had reported revenue of ₹ 2,038.10 crore in the year-ago period.

According to the RoC documents filed in December, Vector E-Commerce, Myntra’s largest seller until early- to mid-2017, saw its revenue fall by over 90% in the year ended 31 March 2018.

Total expenses reduced significantly during FY18 due to a fall in purchase of stock and reduction of inventory, the RoC documents showed. Myntra’s total expenses stood at ₹ 926 crore in FY18 compared to ₹ 2,667 crore in the year-ago period.

“These data points are partial and doesn’t give the entire picture of the company. Myntra and Jabong continue to grow at a healthy rate with a firm focus on delivering the best of fashion and lifestyle for our customers,” said a Myntra spokeswoman, when contacted.

“We are moving forward in our strategic direction as per plan and remain committed to adding value to our customers and brand partners by transforming fashion e-commerce in the country,” she added.

Large online retailers, such as Walmart-controlled Flipkart and Amazon India, have been gradually reducing their dependence on a few large sellers since FDI regulations in 2016 mandated e-commerce marketplaces were not allowed to get more than 25% of their overall sales from one single seller entity. Since then, e-commerce firms have created complex structures to get around those regulations.

Flipkart-owned Myntra is betting heavily on it’s three-year-old private label business for higher margins. It is also planning to expand its offline presence from 12 stores to 200 in the next two years, Mint had reported in August.

Myntra’s private label business accounts for more than 25% of its business and boasts of brands such as Roadster, HRX and Moda Rapido, among others.

In 2018, Myntra’s sales jumped 87% to ₹ 2,038 crore from ₹ 1068 crore a year earlier.

Over the past few years, Myntra has grown fast, pulling ahead of rivals in online fashion retail. It touched an annual run rate of $2 billion in terms of gross merchandise value ( GMV), Mint reported last year in August.