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.
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.
