Meesho Reduces Adjusted Losses By 97% To Rs 53 Cr In FY24

Meesho has made substantial strides toward profitability, declaring a 97 per cent reduction in adjusted losses to Rs 53 crore for the fiscal year ending March 2024. In FY24, Meesho recorded a 33 per cent year-on-year increase in operating revenue, reaching  Rs 7,615 crore, up from Rs 5,735 crore in FY23. This growth was fueled by a 36 per cent rise in orders, particularly in top categories such as home and kitchen, beauty and personal care, and baby essentials.

While specific expense figures were not disclosed, the company attributed its cost reduction to organic growth and efficiencies gained through its logistics arm, Valmo Logistics, started in February 2024. Meesho's dramatic loss reduction—from Rs 1,569 crore in FY23—was reported as adjusted, excluding certain costs such as employee share-based compensation.

Additionally, Meesho concluded its largest employee stock ownership plan buyback program worth USD 25 million last month. As India's third-largest horizontal e-commerce platform, it claimed that it boasts 14.5 crore annual transacting users and maintains its status as the most downloaded shopping app with over 50 crore downloads.

In a competitive landscape, Meesho faces challenges from major players like Flipkart and Amazon. While Flipkart reported a 26.4 per cent increase in gross revenue to Rs 70,542 crore in FY24, Amazon India has yet to disclose its figures. Meesho also secured a USD 275 million funding round in May and is in the process of relocating its domicile from the US to India, with plans for an initial public offering (IPO) on the horizon.