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SoftBank-backed e-commerce platform Meesho has announced its achievement of turning profitable on a consolidated profit after tax basis across all divisions and categories as of July 2023.
In the last 12 months, the e-commerce player said that it has seen significant growth, with order volumes jumping by 43 per cent, culminating in over a billion orders. Additionally, it also boasts strong user retention, with 85 per cent of the orders coming from returning users.
Notably, growth is apparent, with every category being profitable on a standalone basis. Moreover, its horizontal nature is evident as non-fashion categories have surged by over 120 per cent in this period, demonstrating the platform’s diverse appeal.
Furthermore, the platform’s revenue has seen a remarkable 54 per cent increase over the past 12 months, driven by substantial growth in order volumes and monetization rates. However, the company has not given out any specific financial numbers.
- Also read: Meesho targets ₹10,000 crore revenue by 2025 with new user acquisition and non-apparel growth
Despite significant reductions in customer acquisition costs (CAC) and marketing spending by 80 per cent (YoY), it claims to remain the most downloaded shopping app in the country, underscoring its organic strength and strong word-of-mouth. In the last year, it has served over 140 million unique transacting users in the last 12 months, said the company. It also recorded a 60 per cent YoY reduction in tech costs, showcasing improved operational efficiency.
“Since our inception, we have been driven by a vision to empower millions of small businesses, entrepreneurs, and customers, and today’s milestone is a testament to the unwavering dedication of our entire family. As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratising e-commerce for everyone, and unlocking the true potential of India’s heartland,” said Vidit Aatrey, CEO and Founder at Meesho.
The unicorn’s current run rate stands at 3.5 million orders per day and attributes the growth to capital efficiency, the structural advantage of its innovative and asset-lite business model, allows Meesho to maintain quality and scalability while ensuring inherently lower costs.
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