NEW DELHI: SoftBank-backed Meesho reported a significant reduction in its adjusted losses to Rs 53 crore for the financial year ending 31 March 2024, mainly attributed to a reduction in general and administrative expenses.
The company had previously reported an adjusted loss of Rs 1,569 crore in FY 2022-23. "Our Selling, General, and Administrative (SG&A) expenses as a percentage of Revenue from Operations declined sharply, driven by strong consumer awareness and organic traction, alongside the significant operating leverage that comes with a marketplace e-commerce model," the company stated.
"Consequently, our adjusted losses have narrowed by 97 per cent, from Rs 1,569 crore to just Rs 53 crore, excluding Employee Share-Based Compensation expense," the statement added.
Meesho’s revenue from operations increased by 33 per cent, reaching Rs 7,615 crore in FY24, compared to Rs 5,735 crore in FY23. This growth was fuelled by a 36 per cent year-on-year increase in orders delivered, which rose to 84.3 crore from 62.2 crore in the previous fiscal year.
The company became the first horizontal Indian e-commerce firm to achieve profitability within the year, as well as the first to generate positive free cash flow for the full year.
"Meesho has made impressive strides, with 145 million unique Annual Transacting Users (ATUs) in FY 2023-24, implying approximately 10 per cent of India has made a purchase through our platform," the company noted. It observed a shift in consumer behaviour, with customers not only purchasing multiple items within the same category but also diversifying their shopping basket across various categories.
Among the fastest-growing segments on Meesho’s platform were home and kitchen, beauty and personal care, and baby essentials. The company also highlighted its position as the most downloaded shopping app in India, crossing 500 million installs during FY 2023-24.