E-Commerce Platform Meesho Announces Net Loss Down By 82% To INR 305 Cr in FY24 Results

Meesho, an ecommerce company, reduced its net loss by 81.8% to INR 304.9 Cr in the fiscal year 2023-24 (FY24) from INR 1,675 Cr the previous year, owing to improved margins.

Last month, the company stated that it reduced its adjusted net loss, excluding ESOP charges, by 96.6% to INR 53 Cr in FY24 from INR 1,569 Cr the previous year.

A significant increase in revenue was one of the factors contributing to Meesho’s improved bottom line. Its operating revenue increased by 32.8% to INR 7,614.9 crore in the fiscal year under review, up from INR 5,734.5 crore in FY23.

Including other income of INR 230 crore, total revenue increased by 33.2% to INR 7,845.1 crore from INR 5,889.2 crore in FY23.

Meesho, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, was originally a social ecommerce firm. However, in 2022, the company switched to a marketplace strategy to compete with giants like as Flipkart and Amazon.

Related: Flipkart Internet Receives INR 1,421 Cr Boost from Singapore Parent

While Flipkart and Amazon are more popular in metropolitan and suburban areas, Meesho’s competitive advantage is Tier II and III cities. More than 80% of the company’s revenue comes from these cities.

Meesho is one of the rare companies that does not charge commissions for its platform. It is dependent on advertising and marketing revenue from merchants.

The firm claims to have over 15 lakh retailers on its platform from across India and over 140 million annual transacting users. So far, it has raised more than $1.08 billion.

Earlier this year, the business planned to raise approximately $600 million, of which it closed approximately $275 million through a combination of main and secondary share sales.

Meesho was able to keep its spending under control throughout the fiscal year under review, with revenue growth surpassing expense growth. Its total expenses increased 7.8% to INR 8,150 crore in FY24, up from INR 7,564.2 crore the previous year.

Employee costs increased 3.32% to INR 750.4 crore from INR 726.3 crore the previous year.

As an ecommerce platform, Meesho’s greatest expense was logistics and fulfilment. It spent INR 5,926.8 crore under the head in FY24, up 23.5% from INR 4,816.7 crore the previous year.

In fiscal year 24, Meesho cut their advertising and sales promotion expenses in half. It spent INR 459.2 crore under the head, a 50.51% decrease from INR 927.8 crore the previous year.

The company lowered its communication expenses by 7.11% to INR 207.7 crore, down from INR 223.6 crore in FY23.

The company’s server and software expenses remained practically constant at INR 575.4 crore in FY24, compared to INR 567.4 crore the previous fiscal year.