Myntra said it recorded gross sales worth $1 billion on an annualised basis in July riding on the success of an aggressive end-of-season sale.

The company, which also acquired rival Jabong last month, now controls over two-thirds of the online fashion market with parent Flipkart, which is widely expected to reduce discounting in the space. Myntra is now planning to turn profitable by “early next financial year” even as it aims to sell goods worth $1 billion this fiscal, according to CEO Ananth Narayanan. The company has posted a growth of 70% year-on-year in the first four months of fiscal 2017.

Reaching the $1-billion mark in GMV is considered a milestone in the online retail space. Flipkart, Myntra’s parent which acquired the company in May 2014, had hit $1-billion GMV in March 2014. Snapdeal is another online marketplace which has crossed $1billion in GMV. But Flipkart CEO Binny Bansal and Snapdeal CEO Kunal Bahl have recently stated that customer satisfaction, and not GMV, is a key metric being tracked by their firms now.

Myntra CEO Narayanan also agreed with their view. Besides maintaining a “healthy growth” with a focus on unit economics, Myntra aims to increase net promoter score (NPS) from current 47 to 60. NPS is a metric used by online commerce players to measure customer loyalty and also helps track if they will recommend a service to others. “2016 will be a watershed year for fashion ecommerce as consumer behaviour has started to evolve,” said Narayanan.

Source: The Economic Times