Walmart-owned Myntra saw its revenue from operations increase by 25 percent from Rs 3,501 crore in FY22 to Rs 4,375 crore in FY23. Myntra, the fashion e-commerce company, also saw its losses widen 31 percent during the same period from Rs 598 crore to Rs 782 crore on the back of higher expenses during the fiscal year.
Myntra is the second largest fashion e-commerce platform in India, just behind Flipkart Fashion in terms of market share. Flipkart and Myntra are owned by Walmart and compete with Amazon Fashion, Reliance Ajio, SoftBank-funded Meesho and several others in a growing market where players are trying to grab a larger piece of the e-commerce pie.
Myntra saw its total expenses increase 26 percent from Rs 4,207 crore in FY22 to Rs 5,290 crore in FY23 due to an increase in employee benefit expenses and cost of raw materials, among others.
At Rs 1,759 crore, advertising and promotional expenses accounted for a third or 32 percent of Myntra’s total expenses and were the second-largest cost for the Bengaluru-based company. The cost of materials stood at Rs 2,166 crore.
In the ongoing fiscal year, Myntra took steps to improve its financial health. Moneycontrol had reported that Myntra had begun levying a convenience fee on all orders and was even tweaking its return policy to lower tolerance for unprofitable shoppers.
Earlier, Myntra had a 30-day return window but has shortened this to 14 days for most categories, with fewer days for some rare exceptions. Other players in the e-commerce industry, like Ajio, Amazon Fashion and Nykaa Fashion have also reduced the timeline for returns.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!