E-Commerce Turnaround: Meesho Swings to Profitability after 90% Loss Reduction

Meesho, a Softbank-backed e-commerce company, has reported a remarkable shift in its financial performance, marking its first-ever profitable quarter in the financial year 2024. This significant milestone was achieved in the second quarter that ended in September 2023. Despite not disclosing the exact profit figures for the July-September period, the company’s financials show a promising trend.

During the first half of FY24, Meesho experienced a substantial decrease in losses, which dropped by 90% year-over-year (YoY) to Rs 141 crore. Concurrently, there was a notable increase in revenue, rising by 37% YoY to Rs 3,521 crore. This growth trajectory continued beyond the profitable quarter and extended into the festive season, with the company witnessing growth across various categories.

In the previous financial year, Meesho had posted a 77% increase in revenue from operations, totaling Rs 5,735 crore. The company’s success has been attributed to a range of factors, including an increase in shopping app downloads in India during 2022 and 2023, higher transaction frequency among existing customers, an expansion of the category mix, and enhanced monetization through various value-added seller services. Notably, Meesho recorded an impressive 14.5 crore app downloads in India in 2023, as reported by data.ai.

Meesho’s performance is particularly significant as it marks the company as the first horizontal e-commerce firm in India to achieve profitability. This achievement is underscored by the fact that Meesho also crossed the 500 million download milestone in the first half of FY 2023-24, a testament to its growing popularity and market presence. The company’s growth in downloads is primarily driven by organic word-of-mouth, benefiting from its wide selection and competitive pricing strategies.

Overall, Meesho’s recent financial results reflect a positive shift in its business operations, setting a precedent for other e-commerce companies in India and highlighting the potential for profitable growth in this sector.

Share:

MORE STORIES

## Navigating the AI Revolution: 5 Trending Google Ads Topics for Marketers As Google Ads continues its rapid evolution, staying ahead of the curve is paramount for digital marketers. The platform’s increasing reliance on artificial intelligence, shifting privacy landscapes, and the introduction of new campaign types are creating a fresh set of challenges and opportunities. Here are five top trending blog topics that delve into the most critical areas of Google Ads today. ### 1. The Rise of the Machines: Mastering AI-Powered Campaign Types Google is unequivocally betting on AI to drive the future of its advertising platform. A key area of focus for marketers is understanding and mastering AI-driven campaign types like Performance Max and Demand Gen. These campaigns automate targeting, bidding, and ad creation across Google’s entire inventory. A deep dive into strategies for providing the right inputs to these “black box” models, interpreting their performance, and understanding how to guide the AI for optimal results is a crucial topic for advertisers looking to succeed in this new era. ### 2. Beyond the Click: Navigating the New Landscape of Measurement and Attribution With the impending deprecation of third-party cookies and a growing emphasis on user privacy, the way advertisers measure success is undergoing a fundamental shift. This has propelled topics like enhanced conversions, consent mode, and the integration of first-party data to the forefront. Marketers are actively seeking guidance on how to implement these privacy-centric measurement solutions to gain a more accurate and holistic view of their campaign performance in a world without granular user tracking. ### 3. Creative is the New Targeting: Leveraging AI for Compelling Ad Experiences In an automated world, the creative has become a key differentiator. Google is investing heavily in AI-powered tools that can generate and optimize ad copy, images, and videos. Blog posts that explore how to effectively use these generative AI features to create a high volume of diverse and engaging ad creatives are gaining significant traction. This includes best practices for providing creative inputs, A/B testing AI-generated assets, and ensuring brand consistency across automated campaigns. ### 4. The Evolution of Search: Adapting to a More Conversational and Visual SERP The traditional keyword-based search is evolving. Users are increasingly employing longer, more conversational queries, and Google is responding with a more visual and AI-driven search engine results page (SERP). This shift requires a re-evaluation of traditional keyword research and bidding strategies. Trending discussions revolve around how to adapt to this new reality, including the role of broad match keywords, the importance of high-quality creative in visual search formats, and strategies for capturing intent in a more conversational search landscape. ### 5. Future-Proofing Your Strategy: The Growing Importance of a Full-Funnel Approach As automation takes over many of the manual levers within Google Ads, the focus is shifting towards a more strategic, full-funnel marketing approach. Advertisers are looking for insights on how to effectively use different Google Ads campaign types to guide users through the entire customer journey, from initial awareness to final conversion and retention. This includes discussions on how to structure campaigns to complement each other, allocate budgets across the funnel, and measure the impact of upper-funnel activities on bottom-line results.

Google Ads is in the midst of a quiet revolution—one driven by artificial intelligence, privacy-first regulations, and a rapidly changing search landscape. For digital marketers,

Send Us A Message