A non government company Tech Connect Retail, the largest seller entity on Myntra, which earlier acquired InLogg, that is promoted by former Airtel CEO Sanjay Kapoor, has seen an exponential growth in its revenue at Rs 2,485 crore for the financial year 2017, compared to just about Rs 1.3 crore during the year-ago period.
Generating Revenue from Retail Sales
Tech Connect has generated 100% of its revenues from retail sales through e-commerce. The Flipkart-owned Myntra used to register the bulk of its sales from Vector Ecommerce, but it started reducing its dependence on the seller and brought the Tech Connect as a prime merchant on its platform.
Becoming the Top Seller
Tech Connect became a top seller during the last financial year and this resulted in spike in its revenue. Unlike Flipkart, which recently with Amazon planned its sale, Myntra works closely with a few select sellers. The company saw its revenue surge about 90% at Rs 2,000 crore after slower growth in the financial year 2016.
Myntra’s nearness to Tech Connect was additionally credited to the organization hoping to meet government rules which said that one seller can’t contribute over 25% of an online retailer’s business.
Having Close Relation with other Sellers
According to Tofler, Tech Connect has also made a profit of close to Rs 12 lakh for the financial year 2017 compared to a loss of Rs 28 lakh in the previous year.
People aware of the matter also said that Tech Connect has close relations with other sellers on the platform aiding its growth.