STARTUP-STORIES

Myntra Achieves Profitability in FY24 Amid Revenue Growth and Cost Optimization

SUMMARY

Myntra achieved a net profit of ₹31 crore in FY24, reversing a ₹782 crore loss from the previous year, driven by a 15% revenue increase to ₹5,122 crore and strategic cost reductions, including lower return expenses and optimized advertising spending.
The company is expanding into new segments like beauty, home décor, and quick commerce with its M-Now service, aiming to deliver products within 30 minutes in key cities while maintaining a strong focus on core fashion and high-value categories such as international and D2C brands.

Flipkart-owned fashion platform Myntra has posted a net profit of ₹31 crore for FY24, marking a remarkable turnaround from the ₹782 crore net loss recorded the previous year. This shift comes as operating revenue rose by 15% to ₹5,122 crore, alongside a reduction in expenses, according to regulatory filings.

Revenue Growth and Cost Efficiency Drive Turnaround

Myntra’s operating revenue increase, coupled with strategic cost reductions, played a key role in its financial rebound. Total expenses dropped slightly to ₹5,123 crore, with material costs reducing by 8% to ₹1,996 crore. Advertising expenses also declined by nearly 5% to ₹1,677 crore, while employee benefits rose 8% to ₹800 crore.

The company generated ₹52 crore in non-operating revenue, primarily from royalty income, bringing total revenue to ₹5,174 crore. Its focus on reducing return costs—traditionally high in the fashion industry—by offering discounts and other incentives has further streamlined operations.

Profitability Without Compromising Growth

Nandita Sinha, CEO of Myntra and head of Flipkart Fashion, highlighted that profitability stems from leveraging scale and technology without compromising growth. Sinha also noted significant market share gains over the past 12-18 months despite increasing competition from Reliance Ajio and Nykaa.

Expanding Beyond Core Fashion

Myntra is diversifying into segments like beauty and home décor, while maintaining its focus on high-value categories, including international and direct-to-consumer (D2C) brands. Its quick commerce initiative, M-Now, recently launched in Bengaluru, offers 30-minute deliveries of 10,000 stock-keeping units (SKUs). Plans are underway to expand this service to Mumbai, Delhi, and Pune using dark stores and brand retail outlets.