HT Bureau
GUWAHATI, Aug 7: Meesho, India’s unique e-commerce marketplace, proudly announces its historic achievement of becoming the first horizontal e-commerce company in India to turn profitable. This landmark moment solidifies Meesho’s position as a trailblazer in the Indian e-commerce landscape, demonstrating the success of its innovative business model. The company achieved profitability at a consolidated PAT level, encompassing all costs, including ESOP, across all divisions and categories, well ahead of the expected timeline, as of July 2023.
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In the last 12 months, Meesho experienced remarkable growth, with order volumes increasing by 43%, resulting in over a billion orders. The platform’s strong user retention is evident as 85% of the orders came from returning users. Non-fashion categories also surged by over 120%, showcasing the platform’s diverse appeal. Notably, each category is profitable on a standalone basis, emphasizing Meesho’s commitment to sustainable growth.
The revenue over the last 12 months witnessed an impressive 54% surge, driven by substantial growth in order volumes and monetization rate. Despite an 80% reduction in customer acquisition cost (CAC) and marketing spends year-on-year, Meesho remains the most downloaded shopping app in India, highlighting its organic strength and strong word-of-mouth presence. Serving over 140 million unique transacting users in the last 12 months, Meesho continues to revolutionize the e-commerce landscape in India.
Meesho’s operational efficiency also saw significant improvements, with a 60% year-on-year reduction in tech costs. The company’s current run rate has soared to an impressive 3.5 million orders per day, further solidifying its position as a true industry leader.
Vidit Aatrey, CEO, and founder at Meesho, expressed his pride in the achievement, stating, “Today’s milestone is a testament to the unwavering dedication of the entire Meesho family. Since our inception, we have been driven by a vision to empower millions of small businesses, entrepreneurs, and customers. As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratizing e-commerce for everyone, and unlocking the true potential of India’s heartland.”
Meesho operates on a 0% commission model, providing a lucrative proposition for its sellers who are small businesses and individual entrepreneurs. By offering a diverse range of unique, high-quality products at competitive prices, Meesho caters to the preferences of its diverse customer base. The company’s strategic focus on servicing tier 3 and tier 4 cities extends its reach to new-to-e-commerce users, promoting inclusivity. Meesho’s asset-light model with 80% utilization in third-party logistics providers contributes to positive unit economics, providing a competitive advantage.
With a series of achievements in 2023, including world’s fastest shopping app to register 500 million downloads, India’s fastest e-commerce platform to cross 1 million seller base, and recognition as TIME’s 100 most influential companies, Meesho continues to make waves in the e-commerce industry, setting new standards for growth and innovation.
