Meesho Expects To Add 1 Crore Merchants By 2027 Helped By Relaxed GST Rules
CEO Vidit Aatrey expects internet penetration, network reliability, and increasing online payments leading to a surge in online purchases to help the company grow ahead in it’s merchant base.
E-Commerce firm Meesho expects to add 1 crore merchants on it’s platform in the next five years, the company’s CEO said during an interview on Tuesday. The company expects to achieve these numbers helped by the government’s decision to relax GST rules for online merchants.
The Softbank-backed firm claims to be the first e-commerce in India to turn profitable at the group level, it’s CEO Vidit Aatrey told PTI during the interview. The CEO expects the company to be able to carry forward this momentum.
“We have 1.3 million (13 lakh) sellers on our platform. The recent change in policy to allow more sellers without GST is a big boost. We are now planning to add 1 crore more sellers across the country by 2027,” he said.
The CEO pinned his hopes on internet penetration, network reliability, and increasing online payments leading to an increase in online purchases to help the company grow ahead in it’s merchant base. The company doesn't charge commissions from merchants on their sales, rather it seeks a charge for providing services like advertising, logistics, and other business tools from the sellers. Aatrey noted, “We have become more efficient as an organisation. We are very selective on the categories that are profitable.”
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Notably, the e-commerce company reported an operational profit in it’s June quarter and a consolidated profit in July. However, it did not disclose the actual number but the CEO stated that it was less than Rs 10 crore.
Commenting on the company’s potential, Aatrey said, “Only 5-6 per cent of retail transactions are happening online. India has the potential to do a lot more than this. The current macroeconomic situation of inflationary pressure has helped Meesho. We have removed middlemen. We are seeing buyers are able to do more on our platform with the same budget they have had. In such a scenario, people tend to gravitate towards more value for money. That is only going to help us.”
The CEO specifically noted the company’s growth in non-metro cities. He stated that the company witnessed a 43 per cent increase in order volumes in the last 12 months, while revenue increased by 54 per cent in the period. Aatrey added that the company will adhere to it’s principles and will not be charging merchants on their sales.
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