Online fashion retailer Myntra expects to become profitable by 2016, as it continues to benefit from economies of scale resulting from its May 2014 merger with Flipkart, India’s largest online marketplace, as well as growing revenue from its high-margin private label business.
“Myntra will be the first to get to profitability. Early 2016, we will be profitable for sure,” Mukesh Bansal, CEO of Myntra and head of commerce at Flipkart was quoted saying.
Bansal merged his company with Flipkart in May 2014, and has said he remains focussed on boosting profitability at the portal for at least two years now.
Meanwhile, Flipkart Ltd, arguably India’s most pursued Internet company, is pushing its case by reportedly demanding exclusivity from potential investors and forcing them to enter non-compete agreements before they decide to fund the online retailer.
The move by Flipkart limits the pool of investors that can invest in rivals and protects the company from disclosing confidential information and financial details to outsiders ahead of an expected IPO within the next 18 months.