Meesho Reports Maiden Profitable Quarter In FY24, Loss Narrows By 90% In First Half

Regarding the growth, the firm credited it to an increase in shopping app downloads in India in 2022 and 2023, and a surge in transaction frequency of existing customers, among other factors.

Meesho logged 14.5 crore app downloads in 2023 in India, figures from data.ai revealed.

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E-commerce firm, Meesho, said on Friday that it became the first e-commerce unicorn to log consolidated profit after tax in its second quarter ended September 2023. The firm didn’t disclose the exact profit amount it earned in the preceding July-September quarter. 

For the first six months of the current fiscal year, the company registered a moderation of loss to Rs 141 crore, down by 90 per cent on a year-on-year (YoY) basis. At the same time, it also logged an increased in its revenue by 37 per cent to Rs 3,521 crore, on a YoY basis, reported PTI. 

Commenting on the performance, a spokesperson for the company said, “Meesho recorded its first-ever full quarter profitability in the second quarter of financial year 2024 and continues to remain so. The positive momentum in the business continued post this period's end and into the festive season as well where we witnessed continued growth across categories. This is an impressive feat as Meesho became the first horizontal e-commerce company to turn profitable in India.”

The e-commerce firm further said that it recorded its maiden profit in July. The company logged an increase of 77 per cent in revenue from operations at Rs 5,735 crore in the 2022-23 fiscal year. Regarding this improvement in performance, the firm credited it to an increase in shopping app downloads in India in 2022 and 2023, a surge in transaction frequency of existing customers, expansion in the category mix, and a focus on improving monetisation through various value-added seller services. 

Meesho logged 14.5 crore app downloads in 2023 in India, figures from data.ai revealed. “We also crossed the momentous milestone of 500 million downloads in H1, FY 2023-24. Our growth in downloads is now largely coming from organic word-of-mouth led momentum benefitting from the wide selection and low prices on the platform,” the firm said.