By the middle of next financial year, Flipkart Fashion is expected to turn
profitable while Myntra, India's largest standalone fashion website will be
profitable at the operational or Ebitda level by the end of fiscal year
2018. Flipkart, one of India's largest online retailer completes a decade
next year propelled principally by its fashion
business and that
it expects will be the first to turn profitable.
Analysts point out, Flipkart's fashion business including Flipkart's
fashion subsidiaries Myntra
and Jabong
accounted for about
one-third of its gross sales in the September quarter and would make
profitability in this category vital for the overall health of the
loss-making marketplace. Flipkart’s chief executive Binny Bansal feels, by
March next, his company would be in an extremely good growth momentum
going back to 40 per cent year-on-year growth and then accelerating over
the next year. He points out 2016 was a turnaround year for Flipkart when
it will be getting into the fiscal year 2018 with a growth tailwind while
it is entering FY17 with zero growth. While Bansal did not disclose
earnings and revenue for the fashion category, the significance of this
business for the ecommerce player is evident in that Myntra, Jabong and
Flipkart Fashion together command about 75 per cent of India's online
fashion market.
