E-commerce giant Meesho, backed by SoftBank, has achieved consolidated profitability at the profit after tax (PAT) level through strategic cost reductions in customer acquisition, marketing, and tech expenditures.
Landmark Achievement for Meesho in India’s E-commerce Landscape
Meesho proudly announced that it has achieved consolidated PAT-level profitability across its divisions and categories, surpassing expectations ahead of schedule in July. This milestone positions Meesho as India’s first horizontal e-commerce company to attain such financial success.
Meesho Impressive Growth and Diversification
Over the past year, Meesho has witnessed substantial growth, with a 43% increase in order volumes, totaling 1 billion orders. A significant 54% surge in revenue has been driven by 85% of orders originating from returning users. Notably, non-fashion categories experienced remarkable growth of over 120%, showcasing Meesho’s successful diversification strategy.
CEO’s Vision and Commitment to Sustainable Growth
Vidit Aatrey, CEO and Founder of Meesho, expressed pride in the achievement, stating, “Since our inception, we have been driven by a vision to empower millions of small businesses, entrepreneurs, and customers.” Aatrey emphasized the commitment to sustainable growth and democratizing e-commerce for all, while unlocking India’s economic potential.
Meesho Enhanced Operational Efficiency and Future Prospects
During the period, Meesho significantly reduced customer acquisition costs (CAC) and marketing spends by 80% (YoY) and trimmed tech costs by 60%. The company served over 140 million unique transacting users in the last 12 months. Meesho’s asset-light model, utilizing third-party logistics providers for 80% of orders, contributed to enhanced capital efficiency. The platform’s run rate soared to an impressive 3.5 million orders per day.
Equity research firm Jefferies highlighted Meesho’s exceptional growth and impact on India’s online retail market. The platform’s value-driven, unbranded assortment targeted at mid-to-low-income households in Tier 2+ cities resulted in significant GMV growth. Meesho’s achievements led to a 9x growth in GMV to $4.5 billion over the last two years (CY20-CY22). As per Jefferies, 65% of products on the platform are priced 20-30% lower compared to other platforms.
Meesho holds 7% of India’s e-commerce market. It ranks third after Flipkart Group (38%) and Amazon (30%) in GMV. Fidelity Investments adjusted its valuation. Meesho’s value is now $4.4 billion, down from $4.9 billion.
As Meesho continues its journey of growth and innovation, these achievements underscore its position as a pivotal player in India’s dynamic e-commerce landscape.
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