Meesho overtakes Amazon, Flipkart; becomes India's fastest growing ecommerce company

Walmart's subsidiary Flipkart continues to lead the Indian ecommerce sector with a 48% market share.

However, the spotlight is now on Meesho, a SoftBank-backed platform, which has emerged as the fastest-growing e-commerce entity in India in terms of user base. 

According to a report by AllianceBernstein, Meesho has witnessed a staggering 32% Year-on-Year (YoY) growth, surpassing both Flipkart and Amazon's 21% and 13% increase, respectively.

Meesho's edge in tier 2 cities

The growth is largely attributed to its focus on Tier 2 and smaller cities, a market segment somewhat overlooked by giants Flipkart and Amazon. 

The strategic positioning, coupled with a zero-commission model, has no doubt significantly contributed to Meesho's success. Approximately 80% of Meesho's sellers are retail business owners, with around 95% of the platform's selection being unbranded, the report said.

Financial performance and user engagement

In terms of financial metrics, Meesho's order volume has surged by 43% year-on-year, with a notable 54% increase in revenue.

At present, The platform has around 120 million average monthly active users, with an 80% repeat customer rate. Meesho's current gross merchandise value (GMV) run rate exceeds $5 billion, with apparel constituting about 50% of this value, the report claimed.

Market share and growth rate

While Flipkart holds a significant portion of the online retail industry, Meesho's growth rate in user base and app downloads is noteworthy. The startup's user base is growing at 29% year-on-year, with a strong retention rate.

Join our new WhatsApp Channel for the latest startup news updates