Fashion e-tailer Myntra said it has reduced the loss by 25% to ₹655 crore in fiscal year 2017 as against ₹823 crore in the previous year. The company had made a strategic decision to focus on its private labels last year, which seemed to have work well.
According to ecommerce experts, Myntra’s three-year-old private label business has been growing strongly and accounts for about 25% of the firm’s overall revenue.
In September 2017, Myntra announced that its private label business, which includes brands Roadster, Dressberry, Anouk and HRX, had turned profitable.
Myntra Designs,the main entity that runs Myntra’s marketplace, clocked a whopping 94% increase in FY17 revenues at ₹2,000 crore from ₹1,031 crore last year.
Moreover, advertising expense of the company grew 59% to ₹289 crore. Last year it had raised ₹415 crore from parent company, Flipkart.
According to reports, the new management of Flipkart has approved a ‘slump sale’ of its wholesale B2B business to Myntra Jabong India.