India’s leading online fashion portal — Myntra has announced that the company has achieved 80 percent year-on-year (YoY) growth. It further said that the company is expecting $1 billion run rate by the end of FY16.
The combined market share of Flipkart and its subsidiaries — Myntra and Jabong in the online fashion market is over 70 percent. Hence, the company is now expecting revenue run rate of $2 billion by March’18 and profitability by FY2018.
Post the demonetization announcement, Myntra said that it did not face a major dip in sales but cash on delivery sales, which usually amount to 60%, dropped. Also, 5% of its CODs which were usually POS sales has now jumped to 50%, says the company.
Ananth Narayanan, CEO of Myntra and Jabong, said,
This has been the best year for us and this October, Jabong has turned unit economics positive. Jabong and Myntra together has 18 million monthly active users and the growth for both new and existing customers have been healthy.
He further adds that Jabong turned unit economics positive due to synergies with Flipkart and Myntra, such as reducing the offered discounts and combining logistics and tech of the two companies.
The company acknowledged that its growth rate has slowed down but added that the overall growth has been fair. As of the traffic sources, the company’s app has been the major traffic driver, while web contributes 10-15% of the overall traffic.
It has also launched Myntra Brand Accelerator Program which will aim to promote the smaller sellers and help them grow and increase their income by 10%. The company has also launched a new portal which aims to help the brands with customer insights and intelligence reports.
To personalize the user experience, Myntra has leveraged technologies such as artificial intelligence and machine learning. Explaining more about this, Myntra’s chief technology officer Ajit Narayanan said:
Based on customer behaviour like preferred categories, location and past purchases, the platform will now make recommendations that will be more relevant for its users.
Myntra is also experimenting with an offline brick and mortar store. It is all set to launch its store in Bangalore, which the company says is highly tech enabled. Further the company’s Try and Buy feature, which will soon be available in over 25 cities, will drive more users.