Fashion portal Myntra crosses net sales of 1 billion dollar

Myntra became the first online fashion portal in India to cross net sales of 1 billion dollar (Rs 6,700 crores) in July. It shifted from gross merchandise value (GMV) to tracking net sales after investors brought in former McKinsey director Ananth Narayanan as CEO in January.

Myntra’s sales of products at full price doubled in the seven months to July thus helping to maintain healthy unit economics despite showing robust growth. The company’s revenues had grown by 70 per cent in the same period. Narayanan pointed out that the consumer behaviour has started to evolve. Myntra already has more than 10 million monthly active users. Full price sales have doubled from before, discounts have dropped by 10 per cent and repeat consumers are going up.

Myntra claims that it is cash-positive from a unit-economics perspective, thus making it the only fashion e-commerce brand to do so on such a large scale. Myntra expects to be profitable by early next year. It acquired rival Jabong last month and this will help it become profitable soon. It acquired the Rocket Internet backed fashion portal for 70 million dollar (Rs 471 crores) last month. As per the company, both brands will operate independently and will be positioned differently in order to continue to grow the market.

Myntra was acquired by Flipkart in 2014. It had gone app-only store in 2015 but soon realised that it wasn’t working out for it. So now, it’s back to its website version from June 1.