- Angela Gonzalez-Rodriguez |
Flipkart-owned Myntra is aiming to become profitable by March 2018. The fashion e-commerce site will rely on the rationalisation of costs, reducing discounts and the introduction of more private labels to achieve this goal.
Myntra has recently hit the 1 billion dollars revenue milestone, expecting now to double this figure to over 2 billion dollars during this fiscal year: "We crossed a billion dollar run rate this year, we want to cross a 2 billion dollars run rate by 2018 March...we want to be not just unit economic positive but overall profitability, "¨advanced the company in a communication.
"We want to exit the next year with EBIDTA zero January-March 2018," Myntra Chief Executive Officer Ananth Narayanan told PTI.
Narayanan said that the company´s growth rate decreased to 50 percent year-on-year in the days that followed the government's announcement of scrapping old 500 and 1,000 Indian rupees notes.
"We did not de-grow but our growth rates fell from almost 100 per cent to 50 per cent y-o-y. We expect to return to 90-100 per cent growth rates in the coming month," he clarified in a note. In fact, the e-tailer expects its growth rate to be almost 80 percent year-on-year, despite demonetisation.
It´s worth recalling that Myntra bought its rival Jabong in July last year from Rocket Internet for 70 million dollars.