Ecommerce firm Meesho on Wednesday reported a 33% increase in revenue from its India operations to Rs 7,615 crore for 2023-24 from Rs 5,735 crore in the previous year.
The Bengaluru-based online marketplace, which generates most of its sales from non-metro markets, narrowed its adjusted loss for 2023-24 to Rs 53 crore, down 97% from Rs 1,569 crore in 2022-23, and achieved operating cash flow positivity.
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Adjusted loss here excludes the non-operational or one-off items such as employee stock ownership plan (Esop) expenses, asset impairments and other extraordinary costs.
The company had announced a Rs 200 crore Esop buyback programme in March.
The 2023-24 financials pertain to Meesho’s Indian entity, Fashnear Technologies. Its parent firm, Meesho Inc, is domiciled in the US.
The latest financials are yet to be filed with the Registrar of Companies. For 2022-23, the company had reported a net loss of Rs 1,675 crore.
According to Meesho, its financial improvement was primarily driven by growth in annual transacting users and increased order frequency among existing customers, alongside the use of generative artificial intelligence (AI) and machine learning to enhance product discovery, improve in-app experiences, and support customer service.
In 2023-24, the company saw a 36% increase in orders delivered, totalling 843 million, while annual transacting users reached 145 million.
In May, ET reported that Meesho closed a $275 million funding round through a mix of primary and secondary share sales, marking the first tranche of a larger funding round of $500-600 million. Previously, in September 2021, Meesho raised $570 million from investors including B Capital, Prosus, and SoftBank. Since 2015, it has raised a total of $1.36 billion, including secondary transactions.
Further, Meesho highlighted that its selling, general and administrative expenses as a percentage of operating revenue declined significantly, benefiting from growing consumer awareness and organic traction.
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The ecommerce firm said it optimised forward shipping costs significantly with the launch of Valmo, its logistics marketplace which collaborates with small and regional logistics partners.
Founded by Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho competes with leading ecommerce firms such as Flipkart and Amazon India, but unlike its competitors, it does not charge commissions from sellers. Instead, it generates revenue from advertising and logistics services for sellers on its platform.
Meesho has intensified competition with Amazon and Flipkart in metro cities by strengthening its logistics, technology and customer service to appeal to urban consumers. Flipkart and Amazon are also directly competing with Meesho by targeting India’s budget-conscious shoppers through the launch of Shopsy and Bazaar, respectively.
ET had previously reported that the company was in active discussions to reverse flip to India in preparation for a potential initial public offering in the country.
