The fashion and lifestyle arm of the Flipkart group has registered a reduction in FY17 losses by 25% to Rs 655 crore as against Rs 823 crore in the previous year, the company filing with registrar of companies said.
The financial losses stand at Rs 627 crore, shrinking 23% on a standalone basis, the documents accessed by data research platform, Tofler reflected.
According to the experts tracking the fashionMyntra’s three-year-old private label business has been growing strongly and accounts for about 25% of the firm’s overall revenue, according to experts tracking the space. In September 2017, Myntra CEO Ananth Narayanan announced that Myntra’s private label business, which includes brands Roadster, Dressberry, Anouk, and HRX, had turned profitable.
A financial daily in the year beginning had reported the reduction in losses comes even as Myntra Designs, the main entity that runs Myntra’s marketplace, clocked a whopping 94% increase in FY17 revenues at Rs 2,000 crore from Rs 1,031 crore last year.
While the firm has been able to reduce losses by a fourth while doubling revenues, costs have not been redressed. Advertising expenses alone grew almost 59% to Rs 289 crore, weighing heavily on the total expenses for the firm this year, which was higher by 41% at Rs 2,667 crore.
After the unmet financial goals from fashion and lifestyle segment, Myntra’s board of directors has approved a ‘slump sale’ of its wholesale B2B business to Myntra Jabong India, the online fashion marketplace had been attempting to reduce the cost owing to world’s biggest ever e-commerce deal.