Ahead of its target to turn profitable by Q4 FY18, Flipkart-owned online retailer Myntra’s in-house brands portfolio Myntra Fashion Brands (MFB) has turned profitable registering a positive EBITDA of 5% in June this year.
The company expects to clock a run rate of $300 million by end of FY18, which is a growth of 100% over the previous fiscal. The portfolio, which currently consists of 13 brands contributes to 23% of the platform’s business.
Myntra and Jabong CEO Ananth Narayanan said, “We are well on track to achieve profitability this financial year. We believe that 3-5% EBIDTA is sustainable for Myntra Fashion Brands, and it will contribute to achieving profitability for the platform.”
With the festival season ready to set in, and Myntra’s efforts to reduce cost and improve speed across its supply chain and delivery, the company is well positioned to achieve profitability and a run rate of $2 billion, he asserted.
The company plans to launch two more brands under MFB in the near future. Alongside, it is also working on launching offline stores for some of its brands. “One can expect two or three more stores from Myntra soon,” said Narayanan.
Further, leveraging its cross-platform access, Myntra has introduced its brands on Jabong as well.
Roadster, Myntra’s in-house brand, continues to lead the portfolio, bringing in up to 50% of MFB’s business, followed by brands such as Mast & Harbour and HRX.
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