Flipkart-owned fashion, beauty and lifestyle e-commerce marketplace Myntra’s net loss narrowed sharply in 2020-21 (FY21) after the company reported a 44% rise in its revenue for the period under review, the company said in a statement.
The company, operated by Myntra Designs Pvt Ltd, reported consolidated net loss of Rs 429 crore for FY21 against Rs 744.4 crore in 2019-20 (FY20), the company’s filings with the Ministry of Corporate Affairs (MCA) show. The company’s revenue from operations surged to Rs 2,407 crore on a consolidated basis, from Rs 1,675 crore in FY20. The company’s total consolidated income for the period was Rs 2,466 crore from Rs 1,718 crore in FY20.
On a consolidated basis, the company’s total expenses rose to Rs 2,892 crore from Rs 2,463 crore a year earlier, owing to a rise in payment gateway charges and logistics charges, regulatory filings show. On a standalone basis, the company reported a net loss of Rs 425 crore on a revenue of Rs 2,466. The company managed to cut its total consolidated debt significantly to Rs 62.2 crore from over Rs 1,250 crore in FY20.
Myntra’s strong revenue growth reflects the rapid adoption of e-commerce in India and the penetration of it in tier-2 and lower cities since the onset of the pandemic in 2020. Just like Myntra, its parent Flipkart, and rival Amazon reported robust growth in revenue in FY21. Flipkart India Pvt Ltd’s revenue from operations grew a little over 25% to Rs 43,356 crore in FY21, which helped the Walmart-owned company to narrow its loss to Rs 2,445 crore from Rs 3,150 crore in FY20.
The company, in November, had appointed former Flipkart executive Nandita Sinha as its Chief Executive Officer, after the company witnessed a flurry of senior-level exits. Ramesh Bafna, the company’s Chief Financial Officer then, and Harish Narayan, its Chief Marketing Officer, stepped down, following its then Chief Executive Officer Amar Nagaram’s exit. Nagaram, however, moved to an advisory role at Myntra.
In December, the company had said that it had onboarded 90 new brands in the run-up to its bi-annual sale, and the fashion e-retailer was expecting to draw in more than 7 lakh new shoppers on its website. Myntra’s comments followed a blockbuster festival season of 2021, which saw consumers buying products worth nearly $9 billion in India in October.
