E-commerce unicorn Meesho’s revenue jumps 33% to Rs 7,615 crore in FY24

Bengaluru-based e-commerce unicorn Meesho has reported significant financial growth in its fiscal year 2024 (FY24), driven by a spike in user activity and a strategic focus on operational efficiencies.

The company's operating revenue rose by 33% to Rs 7,615 crore, compared to Rs 5,735 crore in the previous fiscal year.

At the same time, Meesho's adjusted losses narrowed sharply by 97%, reducing to Rs 53 crore, down from Rs 1,569 crore in FY23.

User growth and increased order frequency

Meesho’s FY24 results reflect a robust growth in user engagement. The platform saw 145 million unique annual transacting users, with a marked increase in order frequency, especially from underserved non-metro markets in India.

The startup reported that many users are now relying on Meesho for daily needs across a wide range of categories. Home and kitchen, beauty and personal care, and baby essentials emerged as Meesho's fastest-growing segments, contributing to the company’s expanding customer base.

Logistics optimization through Valmo

Meesho’s FY24 improvements were also fueled by logistical enhancements. Earlier in February, Meesho introduced Valmo, a dedicated logistics arm aimed at reducing shipping costs and enhancing delivery speed.

Valmo has since collaborated with smaller regional logistics providers, allowing Meesho to optimize its forward shipping costs and improve return-to-origin rates.

According to Meesho, these logistics refinements have resulted in a 5% cost reduction, with future plans to reduce costs by an additional 5-10% over the medium to long term.

ESOP buyback program and profitability milestone

The fiscal year also marked Meesho’s largest Employee Stock Ownership Plan (ESOP) buyback program, valued at Rs 200 crore (or $25 million).

This initiative provided financial benefits to approximately 1,700 current and former employees.

Meesho claims to have achieved profitability in July 2023, becoming the first horizontal e-commerce platform in India to reach this milestone.

The company has remained cash-flow positive since, positioning itself for further growth in the coming years.

Future prospects and industry competition

Looking forward, Meesho has indicated it aims for sustained profitability, potentially for a full fiscal year by FY25 or FY26.

The company competes closely with established players like Amazon India and Flipkart, particularly in metro markets.

Meesho, however, differentiates itself by waiving seller commissions and generating revenue through advertising and logistics services.

The company is also reportedly exploring the possibility of relocating its domicile from the United States to India in preparation for a future IPO.

Founded in 2015, Meesho has built a platform designed to connect small businesses with millions of customers, leveraging technology to optimize costs and drive user engagement across India.