Meesho‘s net loss significantly decreased by 81.8% to INR 304.9 crore in the financial year 2023-24, from INR 1,675 crore in the previous year. This improvement is attributed to better profit margins.
Meesho operating revenue sees 32.8% surge
According to INC42, the company’s adjusted net loss, excluding ESOP costs, plummeted 96.6% to INR 53 crore in FY24 from INR 1,569 crore in the previous year. Driving this improvement was a 32.8% surge in operating revenue, which rose to INR 7,614.9 crore from INR 5,734.5 crore in FY23.
With the addition of INR 230 Cr in other income, total revenue increased by 33.2%, reaching INR 7,845.1 Cr, up from INR 5,889.2 Cr in FY23.
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Established by Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho began as a social ecommerce startup. In 2022, it shifted to a marketplace model to compete with big names like Flipkart and Amazon.
Notably, Flipkart and Amazon are more popular in big cities and suburbs, but Meesho focuses on Tier II and III cities. The company earns over 80% of its revenue from these smaller cities. Unlike most companies, Meesho doesn’t charge commission fees on its platform. Instead, it makes money from advertising and marketing income from sellers.
Meanwhile, the e-commerce platform has over 15 lakh sellers from across India and more than 140 million yearly transacting users. It has raised over $1.08 billion so far. Earlier this year, it considered raising about $600 million and secured around $275 million through a mix of primary and secondary share sales.
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Meesho’s expenses breakdown
Further, Meesho successfully kept its expenses in check, with revenue growing faster than costs. Total expenses increased by 7.8%, reaching INR 8,150 Cr in FY24, up from INR 7,564.2 Cr in the previous year.
Employee expenses edged up 3.32% to INR 750.4 crore. Logistics and fulfilment costs surged 23.5% to INR 5,926.8 crore, reflecting the ecommerce platform’s core operations. Notably, advertising and sales promotion expenses were slashed by 50.51% to INR 459.2 crore, indicating improved cost efficiency.
The company reduced its communication expenses by 7.11% to INR 207.7 Cr from INR 223.6 Cr in FY23. Server and software expenses stayed almost the same at INR 575.4 Cr in FY24, compared to INR 567.4 Cr the previous year.
