Flipkart-owned fashion e-tailer Myntra announced that its private label business ‘Myntra Fashion Brands (MFB) and brands business, has turned profitable on an EBITDA level. The company added that MFB contributed to about 23% of Myntra’s overall business. It added that its private brand business turned EBITDA positive 2 months ago but did not reveal any actual numbers,
Overall, private labels reported a positive EBITDA margin of 5% in June 2017 and the company expects to generate revenue run rate of $300 million this year (from private labels) as per its forecast. “This performance puts MFB on a path of double digit EBITDA profitability at scale in the next 18-24 months,” Myntra said in a statement. Myntra’s private brands portfolio includes 13 brands; the largest growth came from the casual wear brand ‘Roadster’. The company claims that Roadster brand generates a revenue run rate of over $100 million. In March this year, Myntra launched Roadster’s first offline store in Bangalore.
Myntra said the company will further scale its other labels like Mast & Harbour, Dressberry, Ether, Anouk, K&K, Harvard and Invictus etc. It also said that Mast & Harbour and Dressberry have been identified for marketing investments for next year. The company also added that it will take it private brands businesses around the world.
Competitor, Amazon is also heavily investing in India and launched its first private label fashion brand in the country called Symbol in September last year, followed by ethnic wear brand Myx in December. In September 2015, Amazon launched its first private label in India called AmazonBasics, starting with consumer electronics.
Flipkart’s other private labels
Note that Myntra’s parent company Flipkart recently launched its own two private fashion brands-Metronaut and Divastri. Flipkart also has a private label called DigiFlip for electronic accessories, as well as a lifestyle private label Flippd and a home appliances and personal healthcare private label Citron.
Myntra’s recent highlights
-In June, Myntra appointed Jeyandran Venugopal as its new chief technology officer (CTO), who replaced Ajit Narayanan in less than a year.
-In April this year, Myntra acquired Bangalore-based logistics startup InLogg for an undisclosed amount.
-This month, Myntra’s parent Flipkart secured investments to the tune of $2.5-2.6 billion from SoftBank’s $100 billion Vision Fund.