Meesho Achieves Profitability, Order Volumes Up By 43% On A YoY Basis

CEO Vidit Aatrey noted that the company witnessed a 43 per cent increase in order volumes and 54 per cent growth in revenue in last 12 months.

The company backed by Japan based Softbank said 85 per cent of it’s orders in the last 12 months came from returning customers, highlighting it’s success in customer retention. 

Source : Getty

Indian e-commerce company Meesho achieved a major milestone in its journey. The start-up announced on Monday that it has become the ‘first horizontal e-commerce firm in India to turn profitable’. 

The company credited it’s success to a major growth in order volumes and revenue. According to a PTI report, founder and CEO Vidit Aatrey noted that the company witnessed a 43 per cent increase in order volumes and 54 per cent growth in revenue in last 12 months. “We are humbled and proud to witness Meesho's bold aspiration of becoming profitable come to fruition. As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratizing e-commerce for everyone and unlocking the true potential of India's heartland,” Aatrey added. 

A historic milestone unlocked🚀

Meesho is now the First Horizontal Indian E-commerce Company to Turn Profitable!

Our deep appreciation goes out to our incredible community of Meesho users. Your unwavering trust and loyalty have been the driving force behind our success! 🙏 pic.twitter.com/LSxhOxjRx9

— Meesho (@Meesho_Official) August 7, 2023

The company backed by Japan based Softbank said 85 per cent of it’s orders in the last 12 months came from returning customers, highlighting it’s success in customer retention. 

It further reported that orders in non-fashion categories increased by more than 120 per cent and it’s tech costs reduced by 60 per cent, both on a year-on-year (YoY)basis, as reported by CNBC TV18.

Although, the e-commerce firm didn’t disclose actual financials, it noted that it succeeded in achieving a consolidated profit after taking into account all it’s expenses across divisions and categories. 

We did it!

Thrilled to announce that @Meesho_Official has achieved a historic milestone - profitability (EBITDA and PAT profitable) as of July 2023, making us the first horizontal e-commerce company in India to do so!

And we achieved this feat while driving a 43% growth in…

— Vidit Aatrey (@viditaatrey) August 7, 2023

Aatrey said that Meesho achieved this milestone ahead of the expected timeline. Commenting on the popularity of the firm, he said, “Meesho remains the most downloaded shopping app in India and has served over 140 million unique transacting users in the last 12 months. Meesho's continues to gain momentum, with its current run rate soaring to an impressive 3.5 million orders per day. What sets Meesho apart as a true industry leader is its unparalleled capital efficiency, attributed to the structural advantage of its innovative and asset-lite business model.”

Operating on a zero-commission model makes Meesho very attractive for the sellers, who comprise mostly of small businesses and individual entrepreneurs.