Meesho announced a major milestone as it becomes the first horizontal e-commerce company in India to achieve positive cash flow in the fiscal year 2023-24.
The company reported a remarkable 33% year-on-year growth in operating revenues, reaching INR 7,615 crores, driven by a surge in customer engagement and efficiency improvements.
Strong Financial Performance
Meesho’s financial performance for FY 2023-24 highlights its strategic efforts to enhance operational efficiency.
The company reported a significant reduction in adjusted losses, narrowing from INR 1,569 crores to just INR 53 crores, excluding employee share-based compensation expenses.
This marks a dramatic improvement as adjusted losses have narrowed by 97%, showcasing Meesho’s ability to streamline operations and boost profitability. The company also achieved an operating cash flow of INR 232 crores.
Expanding User Base and Order Frequency
With 145 million unique annual transacting users (ATUs), Meesho now serves approximately 10% of India’s population.
The increase in annual transacting users and higher order frequency among loyal customers has propelled growth, particularly in popular categories such as Home & Kitchen, Beauty & Personal Care, and Baby Essentials.
The company has maintained its position as the most downloaded shopping app in India, surpassing 500 million installs in the past year.
Leveraging AI for Enhanced Shopping Experience
Meesho has embraced advanced technologies like generative AI and machine learning to optimize product discovery and enhance customer experience.
By deploying sophisticated AI models, the company delivers personalized recommendations based on user behavior and preferences, resulting in increased user engagement and higher average time spent on the platform.
Operational Efficiency and Quality Assurance
The company has implemented several initiatives to drive operational efficiencies. Optimized logistics processes have led to reduced shipping expenses and improved delivery times, benefiting both users and sellers.
Programs like ‘Scan and Pack’ have improved fulfillment accuracy, significantly reducing seller claims by around 42%.
Meesho’s commitment to product quality is evident in its focus on customer feedback.
The platform has seen a surge in customer engagement, with 75% of frequent shoppers providing ratings and nearly 80% leaving detailed reviews.
This extensive feedback loop not only enhances the shopping experience but also encourages sellers to maintain high-quality standards.
Future Vision for Inclusive E-Commerce
Looking ahead, Meesho aims to further transform the e-commerce landscape in India by making online shopping more accessible and affordable.
The company is dedicated to empowering consumers, sellers, and logistics partners, striving to bridge the digital divide and unlock the full potential of e-commerce in the country.
