Bengaluru-based ecommerce platform Meesho has announced a remarkable 33% increase in revenue for the fiscal year 2023-24, reaching Rs 7,615 crore, compared to Rs 5,735 crore in the previous year. This growth is largely attributed to a 36% surge in order volume, with significant demand in categories such as home & kitchen, beauty & personal care, and baby essentials.
The company also reported a significant reduction in adjusted losses, which narrowed by 97% to Rs 53 crore in FY24, down from Rs 1,569 crore in the previous fiscal year. The firm credits this improvement to organic growth and operational efficiencies, particularly in logistics, bolstered by the launch of its own logistics arm, Valmo Logistics, in February 2023.
The adjusted loss figure excludes non-operational costs, including expenses related to employee stock ownership plans (ESOP), asset impairments, and other extraordinary items. Meesho recently completed its largest ESOP buyback program worth Rs 200 crore ($25 million) in March. The SoftBank-backed platform claims to be the third-largest horizontal ecommerce player in India, boasting 14.5 crore unique annual transacting users, and appears poised to achieve profitability in the upcoming fiscal years.
“Through our operational efficiencies, especially in logistics, we are making significant strides towards profitability,” a company spokesperson said. The firm has implemented initiatives like the ‘Scan and Pack’ program, which reduces errors by 42% by requiring sellers to capture product images before dispatch.
Meesho’s launch of Valmo has further supported regional logistics partners, reducing shipping costs and enhancing forward shipping efficiency. Founded in 2015, Meesho last raised $275 million in a funding round via primary and secondary share sales in May. This fundraise is reportedly part of a larger $500 million to $600 million round, which could value the company at $3.9 billion.
The company’s recent flagship sale, ‘Meesho Mega Blockbuster Sale 2024,’ demonstrated its growing market presence, with a 40% year-on-year increase in orders, 145 crore customer visits, 3 crore app downloads, and a 45% growth in new ecommerce shoppers.
