Meesho, a prominent player in the Indian e-commerce space, has declared its inaugural full-quarter profitability during the second quarter of this fiscal year, marking a significant milestone for the company. What sets this accomplishment apart is the sustainability of this positive trajectory, extending beyond the initial quarter and continuing into the festive season, where Meesho witnessed sustained growth across its diverse categories. A spokesperson for Meesho proudly declared, “This is an impressive feat as Meesho became the first horizontal e-commerce company to turn profitable in India.”
Profitability and Financial Performance
Meesho’s journey towards profitability reached a pivotal moment in July, showcasing not only resilience but also substantial progress. The company reported consolidated revenue from operations amounting to Rs 3,521 crore, reflecting an impressive 37% year-on-year increase. Simultaneously, losses for the same period witnessed a remarkable decline to Rs 141 crore, showcasing a substantial 90% year-on-year reduction in the first half of the fiscal year 2024.
In the preceding financial year, Meesho demonstrated a remarkable 77% surge in revenue from operations, reaching an impressive Rs 5,735 crore. The company attributes its robust business growth to several key factors, including a surge in shopping app downloads in India during 2022 and 2023, an increase in transaction frequency among existing customers, diversification of its category mix, and a strategic focus on enhancing monetization through various value-added seller services.
Driving Factors and Business Growth
Meesho’s success is further accentuated by data from data.ai, confirming a staggering 14.5 crore app downloads in India during 2023. The company proudly remarked, “We also crossed the momentous milestone of 500 million downloads in H1, FY 2023-24. Our growth in downloads is now largely coming from organic word-of-mouth-led momentum benefiting from the wide selection and low prices on the platform.” This underscores the organic growth driven by positive user experiences and competitive pricing.
Strategic Initiatives and Market Position
Meesho’s journey to profitability aligns with its strategic initiatives, focusing on user-centric approaches, expanding its category offerings, and providing value-added services to sellers on the platform. The company’s commitment to enhancing the overall user experience has not only contributed to its profitability but also solidified its position as a leader in the Indian e-commerce landscape.
Meesho’s achievement of full-quarter profitability and sustained growth into the festive season underscores its resilience, strategic acumen, and ability to adapt to the dynamic landscape of the Indian e-commerce market. As the first horizontal e-commerce company in India to turn profitable, Meesho’s success serves as an inspiration for others in the industry. With a focus on user satisfaction, strategic diversification, and a commitment to providing value to both buyers and sellers, Meesho continues to pave the way for innovation and excellence in the Indian e-commerce space.