Myntra on track to hit $1 bn GMV this fiscal, says CEO
Company also says it hopes to turn profitable early in the next financial yearbusiness Updated: Aug 22, 2016 20:18 IST
Online fashion retailer Myntra said on Monday that it is on track to cross $1 billion in gross merchandise value (GMV) by March next year.
In July the company achieved this on an annualised basis, that is one month’s GMV extrapolated to 12 months.
Myntra on Monday said that it has crossed an annualised GMV $1billion rate (post discounts) in July 2016. This is the first time ever that an Indian fashion brand has recorded $1 billion rate on an annualised average GMV, the company said in a media statement.
“We have now surpassed our January benchmark to make July 2016 the biggest month ever for Myntra. The annualised GMV run rate of $1 billion puts us on the path to touching the $1 billion GMV mark in a fiscal,” CEO Ananth Narayanan said.
GMV is not sales, but the value of business generated by Myntra on its platform where numerous brands sell their products.
The company also said it expects to turn profitable early next financial year.
Narayanan said, “We are unit economics-positive. We are excited by the growth trajectory because growth is coming in a sustainable manner. We want to be at the forefront of fashion revolution. We are looking to turn profitable early next financial year.”
Last month, Myntra acquired its competitor Jabong for an estimated $70 million (around Rs 470 crore), enabling it to corner nearly three quarters of the online fashion market in India on a combined basis.
After the acquisition, Narayanan had said Jabong would be run as an independent brand, which he reiterated at Monday’s media conference in Bengaluru.
“Having two brands makes sense because there are more customers to reach out to. We are stronger on different geographies and customer demography. For instance, Jabong has a deeper penetration in north India and among women. There will be synergies around supply chain and logistics,” he said.