Myntra says private brands portfolio MFB has turned profitable

Fashion e-tailer Myntra today said its private brands portfolio 'Myntra Fashion Brands' (MFB) which contributes to about 24 per cent of the company's revenue had turned profitable.
Noting that earnings before interest, tax,depreciation and amortization (EBITDA) of MFB had turnedpositive in the last 2 consecutive months, the company officials said this is a massive breakthrough for e-commerce in India, at a time when e-commerce was facing questions on losses and burns.
They said MFB's performance puts it on a path ofdouble- digit EBITDA profitability at scale in the next 18-24months.
"We have crossed a milestone and we are quite excited about it. Twenty-four per cent of our revenue comes from Myntra FashionBrands; we have about 13 of them. The private brands actuallybecame EBITDA profitable for the first time in June," Myntra and Jabong CEO Ananth Narayanan told reporters here.

Pointing out that the company is on overallprofitability journey, he said, "We are at about 100 per centyear on year growth for the Myntra Fashion Brands, so we aregrowing faster then the Myntra platform itself and we got toabout 5 per cent EBITDA which I think is first in theindustry."
Myntra Fashion Brands will be roughly about USD 300 million business, he said adding that "in some ways it is as big as stand-alone e-commerce sites, and we are actually profitable in that which is a tremendous achievement."

Myntra was acquired by e-commerce major Flipkart in 2014 in an estimated Rs 2,000 crore deal.

Calling it a first step in Myntra's overall journey towards profitability, Narayanan said the company's goal is to get to overall profitability by the last quarter of this financial year.
Myntra said its business is built on the strength of four pillars - leveraging technology; range and quality; speed; and identification of unique white spaces and addressing the needs of the millennials and Gen Z.
Stating that MFB was the ultimate combination of technology and fashion, Narayanan in response to a question about MFB's contribution to company's sales growing muchbigger said, "it is based on consumers choice, so I expectit to go to 35-40 per cent eventually in about 18 months."

Pointing out that the vision was to build Myntra Fashion Brands into the largest fashion house in the country in the next five years and be the supplier of private brands to the world, Chief of Myntra Fashion Brands Manohar Kamath said our customer-first approach and technology "is at the heart ofeverything we do.