27 March 2025, Hyderabad: E-commerce platform Meesho has recorded an impressive 34% year-on-year (YoY) growth in orders, reaching a staggering 1.3 billion in the April-December 2024 period. This surge in orders equaled the total transactions recorded in the entire financial year 2023, demonstrating the company’s strong upward trajectory as it prepares for its anticipated initial public offering (IPO).
According to Meesho’s financial report released on Wednesday, the company also saw a significant rise in its user base. As of December 31, 2024, Meesho had 187 million unique annual transacting users, marking a 26% increase from the previous year. This rapid expansion underscores the platform’s growing popularity among online shoppers and sellers in India’s burgeoning digital economy.
Revenue Growth and Profitability
Meesho also reported a 25% jump in operating revenue during this period. However, its net loss narrowed by 97% to just ₹53 crore, a stark improvement compared to previous losses. The company’s focus on cost efficiency and operational optimization has been a key factor in reducing its financial deficit.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) have been significantly impacted by exclusions of non-recurring expenses, including employee stock ownership plan (ESOP) expenses, asset impairments, and other extraordinary costs. Despite these financial complexities, the Bengaluru-based firm remains resilient in its pursuit of profitability.
A Closer Look at User Growth
Meesho’s expanding user base highlights the increasing consumer preference for its platform. As of December 31, 2024, the platform had 187 million unique annual transacting users—a notable increase from 148 million in the previous year. This reflects a solid 26% growth in active shoppers, reinforcing Meesho’s position as a major player in India’s competitive e-commerce landscape.
The company’s ability to attract and retain users is attributed to its focus on affordability, a vast product assortment, and a seller-friendly approach that allows small businesses and individual entrepreneurs to thrive in the digital marketplace.
Founder’s Vision and Market Position
Vidit Aatrey, Founder and CEO of Meesho, emphasized the company’s commitment to long-term sustainability and free cash flow generation. “We focus on long-term free cash flow (FCF) per share as the key yardstick to measure our success. This allows us to deliver durable growth without the added complexity of shareholder dilution or excessive fundraising,” he stated.
This strategic approach is expected to strengthen Meesho’s positioning ahead of its IPO. While the company has not disclosed specific financials for the April-December period, its audited annual figures are expected to provide more insights into its profitability trajectory.
Valmo’s Role in Growth
An important factor contributing to Meesho’s growth is its in-house logistics software arm, Valmo. Launched in February, Valmo has played a crucial role in improving delivery efficiency and reducing costs. In just a few months, it has managed more than 50% of the platform’s shipments, reinforcing Meesho’s efforts to streamline operations and enhance customer experience.
Looking Ahead
As Meesho moves closer to its IPO, industry experts anticipate further expansion and financial stabilization. The company’s strong YoY growth, cost-cutting measures, and technological advancements through Valmo position it well for continued success in the competitive Indian e-commerce sector.
With the Indian e-commerce market growing at an unprecedented pace, Meesho’s ability to adapt and innovate will be key to sustaining its momentum. Investors and stakeholders will be closely monitoring the company’s performance in the coming quarters as it gears up for a public listing.
Source: The Economic Times
