Fashion lifestyle e-retailer, Myntra.com, has come a long way since its inception in 2007. From getting heavy PE funding, to recently adding an array of Fabindia products to its portfolio, Myntra is all set to be a leader in the fashion lifestyle e-retail space. In a conversation, Mukesh Bansal, CEO and Founder of Myntra.com, tells us about the company’s growth and current structure.
Vrinda Oberai (VO): What is your mantra for success?
Mukesh Bansal (MB): It would certainly be persistence, flexibility (we are not catering to a niche product category any longer) and hiring top quality talent.
VO: What have been the stumbling blocks?
MB: Initially, serving a niche category was difficult, since it does not account to a scalable business. Also, dealing with logistics and sorting that out has been an area of concern.
VO: Please tell us about the PE funds that you have received.
MB: We have received a total of $40 million of PE funding. We are not looking at any more PE funding in the next two years as we have received enough funds.
VO: Flipkart and Smile Group have developed in-house logistics capacities. What is your take on developing and having in-house logistics capabilities?
MB: We have been working on that. We have built in-house logistics capabilities in five cities – Bengaluru, Delhi, Mumbai, Pune and Hyderabad.
VO: How would you position myntra.com? What are the categories witnessing maximum growth?
MB: We are a fashion lifestyle e-retailer and focus on apparel, footwear and accessories. We are witnessing robust growth in the category and plan to stay focused on that.
VO: What are the expected revenue projections for FY12-13?
MB: We are targeting Rs 500 crore of revenue.
VO: Your deal with Fabindia. Is there any set duration for this deal?
MB: The initial deal is for two years and depending on the kind of response we get, we shall work on renewing the same.
VO: E-retail has come to be known as a “research-before-purchase” tool. Having said that, how many customers just come on the site for research purpose(s)?
MB: As per my opinion, that takes place more in the electronic categories and comparatively much lesser in the lifestyle categories. In the fashion lifestyle category, it is not the case.
VO: How many registered users do you have and how many transactions do you carry out on a daily basis?
MB: We have 2.5 million registered users and carry out 5,000-7,000 transactions per day.
VO: What is the total number of daily visitors to the site? What is the ratio between traffic and sales conversion online?
MB: The total number of daily visitors to the site is 300,000 and the conversion rate is 2.5-3 per cent.