Myntra, first online company close to turning profitable

After India’s largest and leading online platform Flipkart, with 44 percent market share, acquired fashion portal Myntra to strengthen its hold in the high margin fashion business, the latter has benefited from the strong backing. Myntra would be the first ecommerce venture to become profitable early next year.

Along with efficiencies and fund reservoir in the form of Flipkart, Myntra’s strong portfolio of in-house fashion labels bringing better margins and the company is looking forward to close this financial year with 300 percent year-on-year growth. According to the estimates, about one-fourth of Myntra’s business is driven by its in-house fashion brands like Roadster, men's clothing brand HRX by Hrithik Roshan, plus-size women's brand Dressberry, casual wear brand Kook-n-Keech and ethnic wear collection Anouk.

Myntra reported revenue of Rs 441.6 crores for the year ended March 31, 2014, compared to sales of Rs 438 crores at its rival Jabong. Experts expect sales at Myntra to further soar by three times for the year ending March 2015.