Myntra eyeing $1 billion in GMV by FY end

According to reports, Myntra on Monday revealed that it has recorded gross sales worth $1 billion on an annualised basis in July and is on track to cross $1 billion in gross merchandise value (GMV) by March next year.

After its much-hyped acquisition of Jabong last month, it now controls over two-thirds of the online fashion market with parent company Flipkart.

It also claimed to be the first Indian fashion e-commerce company to have crossed the $1 billion run rate in annualised average GMV (post discounts) in July. Flipkart, which acquired Myntra in May 2014, had hit $1-billion GMV in March 2014.

Ananth Narayanan, the CEO of Myntra, said, “We have now surpassed our January benchmark (USD 800 million) to make July 2016 the biggest month ever for Myntra. The annualised GMV run rate of USD 1 billion puts us on the path to touching the USD 1 billion GMV mark in a fiscal.”

Apart from Flipkart, Snapdeal is another online marketplace which has crossed $1billion in GMV. But both founders Binny Bansal and Kunal Bahl have recently stated that customer satisfaction, and not GMV

The company has posted a growth of 70% year-on-year in the first four months of fiscal 2017.

“We have 80% repeat customers. You can see the baseline shifting. In 2015, we have five million monthly users; now it’s 10 million. We are excited by the growth trajectory because growth is coming in a sustainable manner. We want to be at the forefront of the fashion revolution. We are looking to turn profitable early next financial year.”

Besides maintaining a “healthy growth” with a focus on unit economics, Myntra now aims to increase net promoter score (NPS) from current 47 to 60. NPS is a metric used by online commerce players to measure customer loyalty and also helps track if they will recommend a service to others.

Myntra also said it is targeting strong growth in new segments such as home furnishing, re-launching its personal care business and expanding its sales of fine jewellery. Home furnishing is about 1 percent of the revenue and is growing at 50-60 percent on a monthly basis.