Myntra, the fashion e-commerce startup’s, operating revenue increased by 25 per cent, from Rs. 3,501 crore in FY ’22 to Rs. 4,375 crore in FY’23. Myntra saw its losses increase by 31 per cent over the same time, from Rs. 598 crore to Rs. 782 crore, owing to increasing costs during FY ’24.
Myntra’s overall expenses increased by a total of 26 per cent from Rs. 4,207 crore in FY’22 to Rs. 5,290 crore in FY’23, owing to increases in employee benefit spending and raw material costs, among other things.
Myntra is India’s second-biggest online fashion shopping portal, behind only Flipkart Fashion in terms of share of the market. Walmart owns Flipkart and Myntra, which compete with Amazon Fashion, Reliance Ajio, SoftBank-backed Meesho, and others in a booming sector where competitors are vying for a greater slice of the e-commerce pie.
Advertising and promotional expenditures contributed to one-third of Myntra’s overall expenses, or 32 per cent, and were the company’s second-largest cost at Rs. 1,759 crore. The material cost Rs. 2,166 crore.
Previously, Myntra offered a 30-day return window, however, this has been reduced to 14 days for most categories, with fewer days for certain unusual outliers. Other e-commerce companies, such as Ajio, Amazon Fashion, and Nykaa Fashion, have also shortened the return period.
Myntra has been exploring fresh capabilities and verticals such as FWD and Myntra Minis in order to improve the usage of apps and attract new consumers such as GenZ.
According to sources, the firm was reorganising, which resulted in the layoff of roughly 50 people, with its in-house brands vertical receiving the brunt of the impact. During FY ’24, Myntra implemented initiatives to strengthen its financial health.
These modifications were part of Myntra’s new strategy to focus on chosen private labels rather than growing a slew of internal brands it had begun in the clothing market.
