Meesho, a SoftBank-backed e-commerce platform, reported a significant reduction in its adjusted losses, down by 97% to ₹53 crore for the fiscal year ending March 2024. Following its announcement of profitability in June 2023, Meesho is on a promising path toward full-year profitability, projected for FY25 or FY26.
In FY24, Meesho’s operating revenue surged 33% year-on-year to reach ₹7,615 crore, up from ₹5,735 crore in FY23. This growth was primarily driven by a 36% rise in order volume, with the categories of home & kitchen, beauty & personal care, and baby essentials leading the demand.
Although specific expense figures were not disclosed, Meesho credited its cost efficiencies to organic growth and streamlined logistics through its proprietary service, Valmo Logistics, launched in February. This strategic shift has helped to control overall operational costs significantly.
The adjusted net losses saw a dramatic reduction, shrinking to ₹53 crore from ₹1,569 crore in FY23. Notably, the company clarified that share-based compensation expenses were excluded from this adjusted figure. Meesho also concluded a $25 million ESOP buyback program at the end of FY24, adding to its financial maneuvers for enhanced employee engagement.
Positioned as India’s third-largest horizontal e-commerce platform, Meesho has achieved over 14.5 crore unique annual transactions and more than 50 crore app downloads, establishing itself as the country’s most downloaded shopping app. Competing with giants like Flipkart and Amazon, Meesho is strengthening its foothold in India’s e-commerce landscape.
In a recent funding boost, Meesho raised $275 million in May 2024, part of a larger funding initiative. The company is also exploring the possibility of relocating its domicile to India, potentially setting the stage for a domestic IPO in the near future.
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