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.