Walmart-owned online fashion retailer Myntra Designs Private Limited reported its revenues for the financial year 2019-20 as Rs 1,719 crore, a 58 per cent jump since the last financial year. The company further reported a net loss of Rs 744 crore during the same fiscal. This is a 38 per cent increase from the last financial year, showed regulatory documents sourced from business intelligence platform Tofler. The company’s total expenses for the fiscal were reported as Rs 2,463 crore.
The revenue of the firm is mainly generated from services related to marketplace, logistics and consultancy to various brands. However, the company is considering and exploring viable business opportunities with financial support from its intermediate holding company.
The company was granted licence to run and operate the fashion retail platform Jabong.com, effective from September 2019 by Jade eServices Pvt. Ltd. Subsequently the licence was revoked in mutual consent effective from February this year.
Interestingly, with a view to have its presence outside India and to explore business opportunities abroad, the company had strategically invested in Myntra Inc., USA, in the state of Delaware, according to the documents. The firm has made investment amounting to $48.75 in the paid-up share capital of Myntra Inc. which comprises 4,875,000 equity shares. Myntra Inc. is engaged in the business of research and development in the field of internet technology.
This year in July, Myntra expanded in international markets. It forayed into the Middle East and launched Myntra Fashion brands there. The company partnered with the leading regional e-commerce platforms, noon.com and namshi.com to offer brands of Indian origin to millions of fashion-forward shoppers in the region.
The pandemic has accelerated the adoption of e-commerce. Myntra recently witnessed a record-breaking number of visitors at 15 million on the opening day of its flagship sale event End of Reason Sale (EORS). It registered a massive growth of more than 110 per cent over BAU (business-as-usual). The event started with Myntra selling over 3 million items within the first 24 hours, clocking more than 2X growth over the June EORS, as part of the nation’s largest fashion event which ended on Thursday night.