IPO-bound Meesho generates Rs 1,032 crore free cash flow in FY25

IPO-bound Meesho has emerged as the largest free cash flow generator among scaled listed e-commerce companies in India in FY25. 

The company’s Last Twelve Months (LTM) free cash flow moved from negative Rs 2,336 crore to a positive Rs 1,032 crore with interest income, and Rs 591 crore excluding interest income.

The performance highlights the impact of an asset-light, capital-efficient model that helps the platform grow in both scale and depth without heavy capital spending.

Meesho runs an asset-light business model. It does not manufacture or sell private-label products, hold product inventory, or operate logistics infrastructure. This makes the platform more capital-efficient than organised retail or e-commerce models that rely on physical stores, warehousing, owned inventory, or captive delivery networks. 

According to the UDRHP, platform-based models offer faster scalability and asset-light structures, which support more capital-efficient growth, higher returns on capital, and stronger free cash flow generation.

By using the existing capacity of sellers and logistics partners, Meesho has expanded quickly while keeping capital intensity low. Over the past few years, technology companies worldwide have moved from “growth at any cost” to growth driven by stronger unit economics and cash generation.

PDD Holdings (Pinduoduo) generated $16.6 billion in free cash flow in FY24. MercadoLibre reported $1.3 billion in adjusted free cash flow for FY24, supported by scale across commerce, payments, and logistics. Uber Technologies generated $6.9 billion, and Airbnb delivered $4.5 billion with a free cash flow margin of about 40%.

These companies share a common model: technology-led, asset-light marketplaces that convert operational efficiency into liquidity. Once a platform reaches network density, further scale increases margins and cash flow without requiring equal levels of capital investment. 

The same fundamentals are now visible and achievable in India. The company plans to strengthen cash flow generation by expanding scale, improving monetisation, benefiting from network effects, building operating leverage, and maintaining low capital intensity.