The Indus Zone Tech Desk | How Myntra Became a Profit Machine | Inside Myntra’s Business Model & Profit Strategy 2025. Discover how Myntra achieved record profits in FY25 with an 18x YoY surge. Explore Myntra’s business strategy, Gen Z focus, quick commerce push, and future growth plans in India’s online fashion market.
Myntra’s Rise as Flipkart’s Profit Engine
As Flipkart gears up for its highly anticipated 2026 IPO, its fashion arm, Myntra, is quietly stealing the spotlight in India’s competitive ecommerce market. While most online fashion players continue to burn cash, Myntra has become a profit powerhouse, recording an 18x year-on-year (YoY) increase in net profit for FY25.
The company’s success comes on the back of an 18% YoY jump in operating revenue, minimal cash burn, and smart tax management. According to industry analysts, Myntra now contributes significantly to the Flipkart Group’s path toward sustainable growth, serving as its most profitable vertical.
A Bold Shift in Strategy
Rather than engaging in price wars with discount-heavy rivals like Meesho, Nykaa Fashion, AJIO, and even Flipkart Fashion, Myntra shifted its focus toward the mid-premium and premium fashion segments.
This strategic pivot helped Myntra establish a distinct brand identity — something essential in the fashion domain. Market experts estimate that Myntra now holds nearly 20% of India’s online fashion market share, second only to Flipkart’s broader fashion division.
Competitors such as Reliance’s AJIO, Tata CLiQ, and Nykaa Fashion have struggled to capture this same audience, leaving Myntra room to expand rapidly.
👉 Related: How Flipkart’s IPO is Shaping India’s Ecommerce Future (Internal link example)
The Numbers Behind Myntra’s Profitability
Myntra’s financial turnaround has been remarkable.
Net profit (FY25): ₹548 crore, up from just ₹31 crore in FY24
Revenue from operations: ₹6,043 crore (up 18% YoY)
Industry insiders credit CEO Nandita Sinha’s leadership, emphasizing profitability over aggressive expansion.
So, what’s fueling this success story?
Gen Z Engagement: Fashion Meets Technology
Recognizing the purchasing power and trend influence of Gen Z consumers, Myntra launched several youth-oriented initiatives:
Myntra FWD – A dedicated fashion experience tailored for Gen Z shoppers.
Ultimate Glam Clan – A creator-led community where users review and showcase fashion and beauty products through photos and videos.
These campaigns have strengthened Myntra’s hold over trend-driven audiences while reinforcing its dominance in online fashion.
Although AJIO has attempted similar youth outreach strategies, Myntra’s engagement levels and brand recall appear far stronger, contributing directly to higher profitability.
Diverse Revenue Streams Power Growth
Unlike most ecommerce platforms dependent solely on sales commissions, Myntra benefits from a diversified business model across three key segments:
- Marketplace Services – ₹2,051.8 crore (up 15.6% YoY)
- Logistics Services – ₹2,918.9 crore (up 19.7% YoY)
- Advertising Revenue – ₹914.5 crore (up 28.4% YoY)
This advertising-driven growth mirrors global ecommerce leaders like Amazon, where ad sales have become a major profit engine.
Despite belonging to the same group, Flipkart Fashion and Myntra operate independently — a smart move that allows Myntra to target urban, style-conscious consumers, while Flipkart serves value-oriented shoppers in Tier-II and Tier-III cities.
Quick Commerce: The M-Now Experiment
As India embraces quick commerce, Myntra is testing its two-hour delivery service, “M-Now”, across major metros like Delhi-NCR, Mumbai, and Kolkata. With over 40 dark stores and 25,000+ products, M-Now delivers premium brands such as Levi’s, Tommy Hilfiger, Maybelline, Dyson, and more.
However, quick commerce in fashion presents unique challenges — from managing sizes and colors to handling returns. Myntra’s current focus is data collection, operational training, and selective expansion to avoid overreach.
Industry experts suggest that only around 5% of Myntra’s sales will initially come from M-Now, but the initiative positions the brand for the future of instant fashion retail.
👉 External reference: Read how quick commerce is reshaping retail globally (Economic Times)
Expanding Horizons: B2B and International Play
Myntra is also exploring new frontiers to sustain its growth:
B2B Fashion Portal: The platform now allows GST-registered businesses to purchase directly, with access to over 40 lakh products and 10,000+ brands. Buyers can also claim input tax credits up to 18%, making it a strong incentive for retailers.
International Expansion: Myntra has begun testing sales in Singapore, targeting higher-value customers while analyzing cross-border demand.
These initiatives reflect Myntra’s intention to diversify beyond traditional ecommerce and tap into both wholesale and global markets.
Conclusion: A Future-Ready Fashion Giant
With profitability achieved, a loyal Gen Z base, and growing advertising revenue, Myntra has evolved into a model of ecommerce sustainability. Its calculated foray into quick commerce and B2B sales shows that the company is not just chasing trends — it’s building a resilient business for the next decade.
As Flipkart heads toward its IPO, Myntra’s success story underscores the growing maturity of India’s digital fashion ecosystem — one where style meets strategy and profits follow purpose.
