Flipkart-owned Myntra Designs Private Limited, which operates ecommerce marketplace for fashion and lifestyle products, has cut down its net losses by more than a third while at the same time improving its revenues by around three-fold.
According to regulatory filings made by the company which were sourced from business intelligence platform Paper.vc, the unit reported a net loss of Rs 178.78 crore in FY18 as compared to Rs 655.86 crore reported in FY17.
The consolidated revenue of Myntra Designs jumped by close to three-fold to Rs 427.42 crore in FY18 as compared to Rs 155.6 core reported in the previois fiscal. This comes without much increase in the overall expenses for the period which stood at Rs 953.2 crore as compared in Rs 861.9 crore in the previous accounting period reflecting that the company has managed to log healthy growth despite cutting down on the expenses.
However, to be sure, Myntra Designs is one of the subsidiaries of the holding company FK-Myntra Holdings Private Limited. In 2017, the company had renamed one of its subsidiaries as Myntra Jabong India Private Limited (MJIPL) to focus on the B2B segment. FK-Myntra Holdings also has another subsidiary called Jade Eservices Pvt. Ltd.
The improved show by Myntra Designs comes at a time when the government is tightening the norms for online retailers. The revised e-commerce policy has barred the e-commerce players to sell the products by the firms in which they own a stake.
Vendors also cannot have more than 25 per cent of their revenues from a single platform. The rules, which come into effect from February 1, 2019 bar online retailers from selling goods exclusively on their platforms.