Flipkart-owned fashion retailer Myntra Design Pvt. Ltd’s revenue climbed 87% in the year through March 2017 but its net worth eroded as debt levels soared.
The company posted revenue of Rs 2,000 crore ($314 million) in 2016-17, a filing with the Registrar of Companies (RoC) showed. Nearly 94% revenue came from the trading business and the remaining from data processing and other activities via its portal, the filing showed.
The company hasn’t yet filed its detailed financials and the profit and loss statement.
Myntra had reported total revenue of Rs 1,069 crore in 2015-16, up 38% from Rs 774 crore in the previous year. It had posted a consolidated net loss of Rs 823 crore in 2015-16, according to the regulatory filings.
The latest filing showed also that Myntra’s net worth was a negative Rs 363 crore at the end of March 2017. Its outstanding secured loans stood at Rs 47.96 crore and unsecured borrowings at Rs 882.34 crore, totaling Rs 930.3 crore at the end of March 2017. Its previous year’s filings show that the company had total debt of Rs 418 crore.
Myntra’s revenue growth has rebounded after the company scrapped its earlier app-only policy and relaunched its website. The company’s decision to go app-only in 2015 had hurt its revenue growth in May 2015. It relaunched its website six months later.
The company has been increasing its private label business as part of measures to achieve profitability. In August, the fashion e-tailer had said its private label vertical had turned profitable, registering an operating profit margin of 5% in June 2017.
In December the company had said it was planning to turn its artificial intelligence and machine learning platfrom called Rapid into a separate business vertical, just like parent Flipkart.
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