Indian E-Commerce Startup Meesho Attains Inaugural Profit Milestone, Eyes IPO in 12-18 Months
Three points you will get to know in this article:
- Meesho, the e-commerce startup, proudly attains its maiden profit, marking a significant milestone in its journey towards success.
- With the support of SoftBank, Meesho has achieved a revenue surpassing the impressive milestone of $400 million.
- IPO planned in 12-18 months to capitalize on growth.
On August 7th, in Bengaluru, there was significant news from Indian e-commerce startup Meesho. For the very first time, the company has recorded a profit, marking a significant milestone. During an interview, a senior executive of the company revealed their ambitious plan: to become publicly listed on the stock market within the next 12-18 months.
In the vibrant landscape of India’s rapidly expanding e-commerce market, Meesho stands as a formidable competitor, pitting itself against industry giants like Amazon and Walmart’s Flipkart. What sets Meesho apart is its unique approach of catering to smaller towns and cities, offering an array of unbranded products such as clothing and cosmetics. This strategy has garnered them popularity and success. Notably, recent data from PitchBook places Meesho’s valuation at a substantial $7 billion.
After experiencing continuous losses since its establishment in 2015, Meesho, backed by Japan’s SoftBank (9984.T), announced its inaugural profitable month in a recent statement.
The company’s revenue for the period between January and June exceeded $400 million. On Friday, Dhiresh Bansal, the CFO of Meesho, shared with Reuters that they expect this number to exceed $800 million by the end of the year.
Bansal remarked, “As we transitioned from negative to positive territory, the initial gains were modest, occupying the realm of single digits, naturally… Our objective is to sustain this path towards profitability,” while abstaining from divulging precise figures.
Bansal has revealed plans for an initial public offering (IPO) within the next 12-18 months. He emphasized that while the company sees the potential for growth, scale, and profitability to support an IPO, they also aim to establish a substantial track record to instill confidence in potential market investors.
Meesho, co-founded by Indian Institute of Technology alumni Vidit Aatrey and Sanjeev Barnwal, achieved a remarkable milestone by processing over 1 billion orders in the past year, showcasing its distinctiveness and user-friendly approach.
Meesho celebrates its inaugural profit just as Indian startups grapple with a challenging funding landscape, exacerbated by elevated interest rates and a worldwide slump in the tech market. Numerous Indian startups have implemented substantial cost-cutting measures, including significant layoffs, in recent times.
Adding to this positive trend, Zomato, the prominent Indian food delivery titan (ZOMT.NS), also announced its historic maiden profit last week.
Reported by Munsif Vengattil in Bengaluru; Edited by Aditya Kalra and Rashmi Aich.
Meesho’s journey from continuous losses to its first-ever profit is a testament to the resilience and innovation of Indian startups. Their unique strategy of catering to smaller towns and cities has paid off, propelling them into the league of e-commerce giants. With plans for an IPO on the horizon and a track record of processing over 1 billion orders, Meesho is poised for further growth in the dynamic Indian market, offering hope in a challenging funding landscape.
