Bengaluru-based e-commerce unicorn Meesho has recorded substantial growth in its revenue for the fiscal year 2024 (FY24). The company reported a 33% increase in revenue, reaching Rs 7,615 crore, up from Rs 5,735 crore in FY23. Alongside this, Meesho successfully narrowed its adjusted losses by a remarkable 97%, dropping from Rs 1,569 crore in FY23 to Rs 53 crore in FY24. This improvement stems from a rise in active users and strategic operational changes.
Expanding User Base
The growth in Meesho’s revenue is largely due to increased user engagement and order frequency. The platform attracted 145 million unique transacting users in FY24, with significant activity from non-metro regions in India. Many users now depend on Meesho for essential products across various categories, with home and kitchen, beauty and personal care, and baby essentials emerging as fast-growing segments, bolstering Meesho’s customer base.
Enhanced Logistics with Valmo
In February, Meesho launched Valmo, a logistics division aimed at reducing shipping costs and improving delivery speeds. By collaborating with smaller regional logistics providers, Valmo has optimized Meesho’s shipping process, leading to a 5% reduction in costs and better return-to-origin rates. Meesho plans to further cut costs by an additional 5-10% in the long term through continued logistical improvements.
ESOP Buyback and Profitability
FY24 also saw Meesho conducting its largest Employee Stock Ownership Plan (ESOP) buyback program, valued at Rs 200 crore ($25 million). This initiative benefited approximately 1,700 employees, both current and former, reflecting Meesho’s commitment to employee growth. In July 2023, Meesho became the first horizontal e-commerce platform in India to achieve profitability and has since maintained a positive cash flow, paving the way for sustained growth.
Future Plans and Market Competition
Looking ahead, Meesho aims to remain profitable and sustain its positive financial trajectory. The company has set a target to be profitable for an entire fiscal year by FY25 or FY26. Competing with Amazon India and Flipkart, Meesho differentiates itself by waiving seller commissions and generating revenue through advertising and logistics services. Additionally, Meesho is exploring relocating its domicile from the U.S. to India as it prepares for a potential IPO, further solidifying its presence in the Indian market.
Founded in 2015, Meesho has successfully established a platform that connects small businesses with millions of customers, using technology to make e-commerce accessible and cost-effective across India.
