Meesho, a prominent player in the e-commerce landscape, has reached a significant milestone by achieving its maiden profitable quarter in the second quarter of the fiscal year 2024. This positive trajectory extended into the festive season, showcasing continued growth across diverse categories. A spokesperson from Meesho proudly hailed this accomplishment, highlighting the company’s distinction as the first horizontal e-commerce platform in India to achieve profitability.
The company revealed its inaugural profit in July, displaying resilience and ongoing progress. Meesho reported consolidated revenue from operations amounting to Rs 3,521 crore, signifying a 37% year-on-year increase. Remarkably, the losses during this period significantly reduced to Rs 141 crore, marking an impressive 90% year-on-year decline in the first half of the fiscal year 2024.
In the preceding financial year, Meesho showcased a remarkable 77% surge in revenue from operations, reaching an impressive Rs 5,735 crore. The company attributed its robust growth to various factors, including the rise in shopping app downloads in India witnessed during 2022 and 2023, heightened transaction frequency among existing customers, diversification of its category mix, and a strategic emphasis on augmenting monetization through value-added seller services.
Further bolstering Meesho’s success, data from data.ai underscored an astonishing 14.5 crore app downloads in India throughout 2023. The company proudly announced, “In H1, FY 2023-24, we surpassed the monumental 500 million download mark. Our download surge predominantly stems from organic word-of-mouth momentum, benefitting from our platform’s extensive selection and competitive pricing.”
Meesho attributes its download growth to positive user experiences and competitive pricing, illustrating the company’s organic expansion fueled by satisfied customers and attractive pricing strategies.
Meesho’s achieved its inaugural profitable quarter, coupled with significant reductions in losses. It positions the company as a noteworthy player in India’s e-commerce sphere, reinforcing its commitment to sustainable growth and customer-centric offerings.
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