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Myntra to hit $1-bn GMV this fiscal: CEO
BENGALURU: Online fashion retailer Myntra on Monday said that it is on track to cross $1 billion (₹6,700 crore) in gross merchandise value (GMV) by March next year.
BENGALURU: Online fashion retailer Myntra on Monday said that it is on track to cross $1 billion (₹6,700 crore) in gross merchandise value (GMV) by March next year.
In July the company achieved this on an annualised basis, that is the portal’s one month’s GMV, post discounts, extrapolated to 12 months. This is a first in the online fashion retail, claimed the company.
“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,” said CEO Ananth Narayanan.
GMV is not sales but the value of business generated by Myntra on its platform where numerous brands sell their products.
The company also 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.”
Unit economics is the method that determines whether a business model is successful by calculating if producing and selling one unit is profitable or not.
Last month, Myntra had acquired its competitor Jabong for an estimated $70 million (around ₹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 that that Jabong will be run as an independent brand, which he reiterated on Monday at a 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.
