- Key growth segments include home and kitchen, beauty and personal care, and baby essentials.
- Turnaround is primarily attributed to a strategic reduction in Selling, General, and Administrative (SG&A) expenses, which decreased as a percentage of revenue, reflecting enhanced operational efficiency and consumer engagement.
Meesho, a prominent player in India’s e-commerce sector backed by Softbank, has reported a significant reduction in its adjusted losses for the fiscal year ending March 31, 2024.
The company has successfully narrowed its adjusted losses to Rs53 crore, a remarkable decline from the previous year’s staggering loss of Rs1,569 crore.
The turnaround is primarily attributed to a strategic reduction in Selling, General, and Administrative (SG&A) expenses, which decreased as a percentage of revenue, reflecting enhanced operational efficiency and consumer engagement.
Generates free cash flow
Meesho’s revenue from operations experienced a notable growth of 33 per cent, reaching Rs7,615 crore compared to Rs5,735 crore in FY 2022-23.
The surge in revenue was fueled by a 36 per cent increase in the number of orders delivered, totaling 84.3 crore orders.
The company has not only achieved reduced losses but has also distinguished itself as the first horizontal e-commerce platform in India to attain profitability, alongside generating positive free cash flow for the entire fiscal year.
The company’s strategic focus on consumer behaviour has yielded impressive results. Meesho reported a remarkable engagement with 145 million unique Annual Transacting Users (ATUs), indicating that around 10 per cent of India’s population has utilized its platform for purchases.
Furthermore, a diversification in consumer purchasing patterns has been observed, with users increasingly opting for a variety of products across categories rather than confining their purchases to single categories. Key growth segments include home and kitchen, beauty and personal care, and baby essentials.
Moreover, Meesho has maintained its position as the most downloaded shopping app in India, surpassing 500 million installs during FY 2023-24.
The achievement underscores the platform’s growing appeal among consumers, marking a significant milestone in its journey within the competitive landscape of Indian e-commerce.