Flipkart-owned fashion ecommerce marketplace Myntra experienced a notable increase in its net loss, soaring over 30% in the financial year concluded on March 31, 2023. During the fiscal year 2022-23 (FY23), the Bengaluru-based e-commerce platform posted a net loss of INR 782.4 Crores, reflecting a significant rise of 31% compared to the INR 597.6 Crores reported in the previous fiscal year.
Myntra operates a fashion marketplace that facilitates third-party sellers in showcasing and selling their products to customers. Functioning as a marketplace service provider, the company derives its revenue primarily from transaction fees paid by vendors. Additionally, Myntra earns income through its logistics services, advertising services, and consultancy services. Notably, the platform has ventured into retailing products under its own label.
Myntra’s operating revenue recorded a remarkable 25% increase, reaching INR 4,375.3 Crores during the year under review, up from INR 3,501.2 Crores in the previous fiscal year. Considering other income, Myntra’s total revenue also saw a 25% rise, amounting to INR 4,509.2 Crores compared to INR 3,609.9 Crores in FY22.
Myntra’s Expenditure Overview in FY23
The total expenditure increased by 26%, reaching INR 5,290.1 Crores in the year under review, as compared to INR 4,206.9 Crores in the previous fiscal year.
The startup allocated 2,165.7 crore INR for procurement, marking a 22% rise from the 1,770 crore INR in FY22. Notably, Myntra possesses various private labels like Mast & Harbour, Harvard, Invictus, Moda Rapido, and Roadster.
In FY23, nearly 40% of Myntra’s operational revenue was dedicated to advertising. The advertising costs surged by 36%, reaching 1,758.8 crore INR, compared to 1,298 crore INR in FY22.
Employee costs saw a 21% rise to INR 631.8 Cr in FY23 from INR 522.5 Cr in the previous fiscal year. This category includes expenses related to employee salaries, gratuity, and other employee welfare benefits.
The startup’s EBITDA margin declined to -16.4% in FY23, compared to -15.75% in FY22.
To enhance its outreach, Myntra has been intensifying its emphasis on Tier-II and III cities. In a recent interview, Myntra CEO Nandita Sinha mentioned that 40% of international brand orders on the platform originated from these cities.
In addition to bringing new brands on board, Myntra has been introducing fresh features and verticals such as Myntra Minis and FWD. This strategy aims to enhance user experience and appeal to GenZ customers.
Myntra competes with Reliance-owned AJIO, Nykaa Fashion, and Tata CLiQ.
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