09 August 2023, Mumbai
Platform reports profitability
Meesho, a Bengaluru-based platform specializing in value commerce, achieved profitability in July 2023, marking a significant milestone.
The company demonstrated impressive growth, with a 54% increase in revenue and a commendable 43% rise in order volume over the past year.
Notably, Meesho is the pioneering horizontal ecommerce platform in India to attain profitability. This achievement can be attributed to factors including robust order volume expansion, improved monetization, and strategic cost reduction.
Revenue growth & order volume growth
Over the last twelve months, Meesho experienced a substantial 43% increase in order volumes, exceeding one billion orders.
Particularly remarkable is the 120% growth in non-fashion categories within the same period. Crucially, Meesho's profitability strategy involved an 80% reduction in customer acquisition costs (CAC) and marketing spending year-on-year, along with a 15% reduction in employees in May as part of cost-cutting measures.
Valued at $4.4 billion and backed by around $1.06 billion in equity funding from investors like SoftBank, Prosus, and Sequoia, Meesho serves 140 million transacting customers, processing 3.5 million daily orders.
Notably, it refrains from charging commissions to sellers, offering diverse categories such as apparel, electronics, and home essentials.
Meesho's profitable milestone holds significance in the Indian ecommerce industry, positioning the company for sustained growth and a competitive stance against industry giants like Flipkart and Amazon.