Flipkart-owned fashion ecommerce marketplace Myntra’s net loss jumped over 30% in the financial year ended March 31, 2023. The Bengaluru-based ecommerce marketplace posted a net loss of INR 782.4 Cr in the financial year 2022-23 (FY23), an increase of 31% from INR 597.6 Cr in the previous fiscal year.
Myntra runs a marketplace which allows third-party sellers to sell their fashion products to customers. As a marketplace service provider, the startup generates revenue primarily from transaction fees that the vendors pay. Besides, it also earns from logistics services, advertisement services, and consultancy services. Myntra has also started selling products under its own label.
Myntra’s operating revenue jumped 25% to INR 4,375.3 Cr during the year under review from INR 3,501.2 Cr in the previous fiscal year. Including other income, Myntra’s total revenue rose 25% to INR 4,509.2 Cr from INR 3,609.9 Cr in FY22.
Where Did Myntra Spend?
Total expenditure rose 26% to INR 5,290.1 Cr during the year under review from INR 4,206.9 Cr in the previous fiscal year.
Cost Of Materials Consumed: The startup spent INR 2,165.7 Cr on procurement, an increase of 22% from INR 1,770 Cr in FY22. It is pertinent to note that Myntra owns a host of private labels, including Mast & Harbour, Harvard, Invictus, Moda Rapido, and Roadster.
Advertising Expenses: Myntra spent almost 40% of its revenue from operations on advertising in FY23. Its advertising expenses zoomed 36% to INR 1,758.8 Cr from INR 1,298 Cr in FY22.
Employee Benefit Expenses: Employee costs rose 21% to INR 631.8 Cr in FY23 from INR 522.5 Cr in the previous fiscal year. Employee benefit expenses comprise employee salaries, gratuity, and other employee welfare benefit costs.
The startup’s EBITDA margin deteriorated to -16.4% in FY23 from -15.75% in FY22.
In order to further expand its reach, Myntra has been ramping up its focus on Tier-II, III cities. In a recent interview, Myntra CEO Nandita Sinha said that the platform received 40% of the international brand orders from these cities.
Besides onboarding new brands on its platform, Myntra has also been launching new features and verticals like Myntra Minis and FWD to improve user experience and attract GenZ customers.
Myntra competes against the likes of Reliance-owned AJIO, Nykaa Fashion, and Tata CLiQ..
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