How Myntra Became A Profit Machine

Flipkart may be busy putting its house in order ahead of its 2026 public market debut, but sister company Myntra is quietly stealing the spotlight. In a market where most players are still bleeding cash, the fashion marketplace has turned into a profit machine.

In FY25, Myntra’s net profit rose nearly 18X year-on-year (YoY) driven by an 18% YoY rise in operating revenue, low cash burn and a deferred tax credit. In fact, it’s looking more and more like Flipkart could turn to Myntra for the profitable growth in the short term even as the main marketplace struggles.

But, there is also something else brewing behind its change of fates.

Myntra has been quietly rewriting its playbook. Instead of fighting tooth and nail in the low-value fashion segment, the ecommerce platform giant doubled down on something that does not pit it directly against the likes of Meesho, Nykaaa, AJIO, and even its parent, Flipkart.

The bet is paying off, and Myntra now commands a 19–20% share of the online fashion market, confirmed multiple industry experts Inc42 spoke with.

The consensus is that while Flipkart Fashion is bigger overall, thanks to its broader base, Myntra has successfully built a brand identity that stands on its own. And this matters more in the fashion space.

And, of course, the lacklustre competition, especially in the mid-premium segment, has practically rolled out the red carpet for Myntra’s rise. Reliance’s AJIO, Tata Clique, and Nykaa Fashion have fumbled to crack this segment, giving Myntra plenty of space to stretch its wings.

Now, before we dive into how Myntra is steering its ship, let’s catch up on the top stories from our newsroom this week:

• Startup Funding Tanks In Q3: The Indian startup ecosystem hit a sobering reality check in Q3 2025. Funding numbers nosedived 38% YoY to $2.1 Bn as just 1 mega deal materialised and geopolitical tensions played the spoilsport. Largely to blame for the subdued numbers was the escalating US-India trade uncertainties.
• Festive Vibes Sour: The 2025 festive season is expected to generate a record $13.1 Bn in sales for Indian ecommerce giants. Yet, behind the glittering discounts and flash sales lies a troubling reality – systematically deployed dark patterns to push shoppers into spending more. But, will this blight India’s festive frenzy?
• PhysicsWallah Has A Teachers’ Problem: As PW gears up to be the first Indian edtech to go public, a storm is brewing within its ranks. The company is facing a significant faculty problem, marked by allegations of unfair terminations, an opaque review system, and a culture that prioritises student retention over educational outcomes.

BigBasket’s Bland Recipe: Once the poster child of India’s online grocery delivery market, BigBasket now finds itself losing customers, haemorrhaging cash, and facing shrinking revenues – all amid raging murmurs of a top-level shakeup. So, how did it all go so wrong at Tata-owned BigBasket?

Myntra’s Winning Formula

It’s no surprise that since Flipkart is moving towards an IPO, its various verticals and products are all working towards profitability. “Myntra is the first to show results, and this isn’t entirely new — ever since Nandita Sinha joined Myntra, the focus has consistently been on profitability,” a senior industry source told us.

A glance at Myntra’s numbers reveals a hefty profit of INR 548 Cr in FY25, up from just INR 31 Cr in the previous fiscal year. Revenue from operations also grew 18% to INR 6,043 Cr from INR 5,122 Cr in FY24.

So, what’s driving Myntra’s well-oiled profitability machine?

For the past few years, the ecommerce major has placed significant emphasis on Gen Z shoppers, recognising their influence on fashion trends. In 2023, it launched FWD, a dedicated fashion experience for younger audiences, and Ultimate Glam Clan, a shopper-led creator programme where Gen Z users review and showcase products through text, images, and videos.

These initiatives have helped Myntra engage a trend-conscious generation while reinforcing its leadership in online fashion. It must be clarified that Myntra rival AJIO has also used this strategy to bring in more users across price points. However, it’s not clear if AJIO’s efforts have translated into profits.

True Power Of Diversification

Besides tapping into evolving fashion trends, what also works for Myntra is its diversified revenue model, which spans three streams — marketplace services, logistics services, and advertising.

To put things into perspective, marketplace services revenue rose 15.6% YoY to INR 2,051.8 Cr in FY25, while logistics grew 19.7% to INR 2,918.9 Cr. Advertising, meanwhile, is proving to be a major lever for profitability, up 28.4% to INR 914.5 Cr from INR 712.3 Cr in FY24.

While marketplace and logistics remain solid contributors, advertising is emerging as a differentiator — a trend that mirrors global giants like Amazon.

Some credit must also go towards the fact that Flipkart Group has kept Flipkart Fashion and Myntra at more than an arm’s length from each other. Though part of the same group, they target different audiences. Flipkart caters to value-conscious shoppers in tier II and III cities and towns, while Myntra is more geared towards fashion-forward, trend-seeking consumers or even the cream of the Indian consumer market who are willing to spend more.

The Quick Commerce Push

Cognisant of emerging trends, Myntra is also making a move into the fast-paced world of quick commerce. After testing the waters in Bengaluru, the marketplace has now rolled out its two-hour delivery service, M-Now, in Delhi NCR, Mumbai and Kolkata.

With a cavalry of 40+ dark stores, stocking around 25,000 products, M-Now delivers everything from Levi’s and Tommy Hilfiger to Jack & Jones, Maybelline, and Dyson. Its recent additions include Marks & Spencer, Pantaloons, Decathlon, and Snitch.

But let’s be honest: while quick commerce has worked wonders for food and essentials, apparel brings a whole new set of challenges like sizes, colours, styles, and return to origin (RTO).

So does it make sense for Myntra?

Firstly, Myntra doesn’t want to be left behind. Therefore, it’s testing the waters, training teams, and collecting data. It is all decked up for the fashion quick commerce take off. Models take time to evolve just as we saw in the case of Blinkit or Zepto in the early days.

However, unlike groceries, fashion purchases are more sporadic and trend-driven. Hence, Myntra needs to figure out which neighbourhoods have high-intent buyers to concentrate its dark store inventory accordingly. This will help it deliver fashion at the eleventh hour, without overexpansion.

As for now, however, Myntra industry experts expect around 95% of business to continue via its regular channels, with only a small, incremental 5% happening via M-Now.

But by dipping its toes into quick commerce right now, Myntra is learning the ropes, building operational muscle, and positioning itself to scale rapidly for tomorrow.

Building A Future-Proof Playbook

While Myntra continues to wear the crown in India’s online fashion segment, the platform isn’t resting on its laurels and is taking several steps to stay ahead of the curve.

On the international front, Myntra is testing the waters in Singapore, aiming to understand the market dynamics before committing. Most orders will still be fulfilled from India via regular shipping.

While the potential exists, these markets are currently modest — maybe a city or two — offering higher average order values but limited overall impact.

There’s no indication of a major budget being allocated for full-scale international expansion at this stage. These moves appear more about experimentation and signalling growth ahead of an IPO.

Another notable initiative is Myntra’s entry into B2B sales, allowing GST-registered businesses to purchase fashion, beauty, and lifestyle products directly from its platform. This covers over 40 Lakh products across 10,000+ brands. GST-registered buyers can now claim an input tax credit of up to 18%, with automatic GST-compliant invoices generated at checkout.

The move is aimed at small retailers and corporate buyers, addressing a longstanding gap in India’s wholesale ecosystem and creating a new revenue stream for Myntra.

Together, the moves show that Myntra is not just defending its position in India but also broadening its playbook for the future. While challenges remain — from fashion’s unpredictable demand to limited international reach — Myntra is clearly preparing for the next growth phase.

Sunday Roundup: Startup Funding, Deals & More

• Startup Funding Cools Off: After a late-September funding surge, India’s startup ecosystem cooled off in the first week of October. Fourteen startups raised $160.3 Mn between September 29 and October 4, a 58% drop from the previous week’s $377.4 Mn.

• Zepto’s Funding Feast: The quick commerce unicorn is back in the funding game and aims to raise $400 Mn at a $7 Bn valuation. After raising $1 Bn in 2024, Zepto faces a slowdown, and the fresh capital would help the startup reclaim market share in India’s fiercely competitive quick commerce space.
• Simpl Lays Off After RBI Whiplash: Following an RBI clampdown, the BNPL startup has laid off around 80 employees, hitting sales and marketing teams the hardest. The regulator has asked Simpl to halt all payment operations for operating without a licence. The RBI action follows an ED complaint over alleged FDI violations.
• UPI Dips But Stays Strong: UPI transactions slipped 2.5% to 19.6B in September after August’s record high, though value held steady at INR 24.9L Cr. YoY growth remains robust, and NPCI eyes EMI-on-UPI as debates over charges simmer.
• RBI’s AI Shield Against Online Frauds: The RBI is cooking up an AI-powered tool to catch shady online transactions. It’ll track mule accounts and flag risky activity, aiming to keep both your wallet and the banks safe from digital fraud.

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