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Myntra Makes History: Turns Profitable in FY24 as Revenue Hits INR 5,121.8 Cr

Quick Summary
  • Myntra, a leading fashion e-commerce platform, reported a net profit of INR 30.9 Cr in FY24, its first-ever profitability milestone.
  • Revenue from operations grew 15% year-on-year to INR 5,121.8 Cr, supported by cost optimization and innovative delivery services like “M-Now.”
  • With reduced material costs and steady ad spend, Myntra successfully transitioned from a loss of INR 782.4 Cr in FY23 to profitability in FY24, further solidifying its position in the competitive e-commerce space.
Myntra profitability FY24
Myntra, one of India’s leading online fashion marketplaces, reported a consolidated net profit of INR 30.9 Cr in FY24, a remarkable turnaround from the massive loss of INR 782.4 Cr it faced in FY23. This shift came on the back of a 15% surge in revenue and strategic cost optimization.

The platform’s operational revenue soared to INR 5,121.8 Cr in FY24, up from INR 4,465 Cr in the previous fiscal year. Adding INR 51.9 Cr in other income—primarily driven by royalty earnings of INR 45.6 Cr—the total income for the year touched INR 5,173.7 Cr.

Key Drivers of Myntra’s Success

  1. Diverse Revenue Streams:
    Myntra generates most of its revenue from transaction fees paid by third-party sellers on its platform. Additionally, it earns through logistics, advertisements, consultancy services, and sales under its private labels.

  2. Delivery Innovations:
    To keep up with the quick commerce trend, Myntra introduced faster delivery options. After piloting four-hour deliveries in select cities in September, the company rolled out its “M-Now” service in November, offering delivery within 30 minutes to two hours.

  3. Cost Optimization:
    The company effectively reduced its expenses by 3% to INR 5,123 Cr, down from INR 5,290.1 Cr in FY23.

Expense Breakdown

  • Cost of Materials: At INR 1,996.4 Cr, this accounted for the largest share of Myntra’s expenses but saw an 8% decrease from FY23’s INR 2,165.7 Cr.
  • Employee Benefits: Staff costs increased by 8%, reaching INR 800 Cr compared to INR 742.5 Cr in FY23.
  • Advertising & Promotions: Myntra allocated INR 1,677.4 Cr for promotions in FY24, marking a 5% reduction from the INR 1,758.8 Cr spent last fiscal year.

Myntra’s Growth Journey

Founded in 2007 by Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena, Myntra initially began as a platform for personalized gifts before pivoting to fashion. Acquired by Flipkart in 2014 for $240 Mn, Myntra has since grown into a powerhouse in India’s online fashion retail sector.

The platform’s profitability marks a significant milestone in its evolution. With steady revenue growth, cost-efficient operations, and a customer-centric approach, Myntra is poised to strengthen its foothold in the highly competitive e-commerce market.
Myntra’s focus on shorter delivery times and the expansion of private labels reflect its commitment to staying ahead in the fashion e-commerce space. As it continues to innovate and adapt, the company is set to play a pivotal role in shaping the future of online fashion in India.

By achieving profitability in FY24, Myntra has not only proved its business model’s resilience but has also set a benchmark for other players in the industry.

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