Meesho Reduces Adjusted Losses by 97% to Rs 53 Crore in FY24
Meesho reports a remarkable 97% reduction in adjusted losses, bringing them down to Rs 53 crore for FY24. The company's strong revenue growth and improved operational efficiencies highlight its path toward profitability.
meesho
Meesho announced that it achieved profitability in June 2023, and the SoftBank-backed company is on track for full fiscal year profitability by FY25 or FY26. Its adjusted losses significantly decreased by 97%, dropping to Rs 53 crore for the fiscal year ending March 2024.
The company reported a 33% year-on-year increase in operating revenue for FY24, reaching Rs 7,615 crore, up from Rs 5,735 crore in FY23. This revenue growth was driven by a 36% rise in orders, with home & kitchen, beauty & personal care, and baby essentials being the top categories on the Bengaluru-based platform.
While specific expense figures weren't disclosed, Meesho indicated that organic growth and efficiencies gained through its logistics arm, Valmo Logistics—launched in February—helped reduce overall costs in the past fiscal year.
Meesho's year-on-year losses fell dramatically from Rs 1,569 crore in FY23 to Rs 53 crore in FY24. This adjusted loss figure excludes certain costs, including share-based compensation for employees.
Additionally, Meesho completed its largest ESOP buyback program, valued at $25 million, in the last month of FY24.
As the third-largest horizontal e-commerce platform in India, behind Flipkart and Amazon, Meesho boasts 14.5 crore unique annual transacting users and has over 50 crore downloads, making it the most downloaded shopping app, according to the release.
Meesho competes with Flipkart Internet and Amazon India’s marketplace. While Amazon India has not yet released FY24 figures, Flipkart Internet reported a 26.4% growth in gross revenue, totalling Rs 70,542 crore for the fiscal year.
In May, Meesho secured a $275 million funding tranche as part of a larger round that included both primary and secondary components. The company is also in the process of relocating its domicile from the U.S. to India, although details about its initial public offering (IPO) timeline remain unspecified.
