Meesho's FY23 revenue rises 77%, losses shrink by half
Meesho, an affordable e-commerce platform, has seen a 77% surge in revenue from operations, hitting Rs. 5,735 crore in FY23 compared to Rs. 3,232 crore in FY22. The company's losses also shrank by 49%, from Rs. 3,251 crore in FY22 to Rs. 1,675 crore in FY23. This growth is credited to existing customers making more transactions on the platform and successful monetization efforts throughout the year.
Factors behind Meesho's improved financial performance
The Bengaluru-based company managed to reduce its losses mainly due to lower customer acquisition costs (CACs) and decreased spending on server and infrastructure components. Meesho's CAC dropped from around Rs. 250 two years ago to roughly Rs. 50-60 now. Moreover, the company has slashed its cloud costs by at least 50%. These cost reductions, along with two rounds of layoffs, have enhanced Meesho's unit economics and led to a higher valuation of $4.9 billion as of September 2021.
H1 FY24 results show continued growth for Meesho
Meesho's robust performance continued into the first half of the current fiscal year. In H1 FY24, the company's revenue from operations reached Rs. 3,521 crore, a 37% year-on-year increase. Losses during this period shrank by 90% to Rs. 141 crore. The SoftBank-backed company stated, "The revenue from operations in just these six months exceeded the full year revenues of FY22. The business continued to demonstrate sustainable growth."
Meesho's impact on sellers and future outlook
Nearly 75,000 Meesho sellers achieved double-digit growth, while over 20,000 sellers saw a 10-times growth in their business. Meesho also reported that nearly 10,000 sellers crossed the Rs. 1 crore sales mark and 1,30,000 registered sales of over Rs. 1 lakh during 2023. In a statement, Meesho said, "We were among the first movers to adopt a discovery-led product interface, keeping in mind the needs and preferences of our user base - Most of whom are new to online shopping."
