Flipkart-owned fashion etailer Myntra’s losses widened 39% to Rs 597.6 crore during financial year 2021-2022 (FY22) from Rs 429 crore in the year before.
However, the company’s consolidated operating revenues jumped 45% crossing Rs 3,501 crore in FY22, according to the data accessed by business intelligence platform Tofler.
Myntra provides marketplace operations services to buyers and sellers. It earns from providing the marketplace, logistics, advertisement and consultancy services to various brands.
The company earns majority of its revenues from marketplace services, which grew 18.5% to Rs 1,601.6 crore in FY22. The revenue it generated from logistics services grew over 90% to Rs 1,498.4 crore during the year. It earned Rs 344.6 crore, up 77% on a yearly basis.
Income from royalty, subleasing, services in nature of electronic gift vouchers among others, helped the platform earn Rs 1,08.7 crore in the form of other income in FY22.
The Walmart-backed online retailer is led by Nandita Sinha, who took over the role of chief executive office in January this year. She was appointed for the role after a few top executives left the organisation.
Myntra’s total expenses grew by 45% to Rs 4,206.9 crore in FY22, up from Rs 2,891.6 in FY21, largely due to employee benefits expense and logistics and advertising costs.
Myntra’s cost of materials in FY22 was Rs 1,770.3 crore, up 57% from the year before. This includes logistics charges of Rs 1,680 crore and payment gateway charges of Rs 90.2 crore in FY22. During the year, logistics charges for Myntra grew by 57.5%, while payment gateway charges grew by 54%.
Employee benefit expense of the company increased to Rs 521.2 crore during the year, up 12% from Rs 464.7 crore in the year before. This includes its employee share based payment expense, which fell 7.8% to Rs 139 crore in FY22, from Rs 150.8 crore previously.
Advertising promotional expenses formed a major chunk of costs. The company spent Rs 1,298.1 crore in advertising and business promotion in FY22, 70% more than it spent in FY21.
Myntra spent Rs 63.8 crore in customer care expenses in FY22, 32% more than Rs 48.2 crore it spent in FY21.