E-commerce company Meesho on Wednesday reported its FY24 audited results with revenue from operations growing by 33 per cent to Rs 7,615 crore from Rs 5,735 crore in FY23, on the back of 36 per cent growth in orders delivered from 62 crore to 84 crore. The company, which focuses on shoppers from Tier II and III cities and competes with Flipkart and Amazon, said its operating cash flow also turned positive in FY24 to Rs 232 crore from minus Rs 2,303 crore in FY23, marking a key milestone in the e-commerce space where profits have been hard to come by for leading players in the market.
The revenue growth “was primarily driven by an increase in our annual transacting users as well as higher order frequency of our existing loyal customers,” Meesho said in a statement.
Moreover, its adjusted losses also reduced by 97 per cent from Rs 1,569 crore in FY23 to Rs 53 crore in FY24, excluding Employee Share Based Compensation expense.
The losses shrunk also for the SoftBank and Prosus-backed company because “its 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.”
Meesho claimed 145 million unique Annual Transacting Users (ATUs) in FY24, “implying approximately 10 per cent of India has made a purchase through our platform.” It also claimed to be the most downloaded shopping app overall in India, crossing the overall 500 million install mark during the course of FY24.
The company had raised $275 million earlier this year.
Meanwhile, Walmart-owned e-commerce company Flipkart’s marketplace arm Flipkart Internet had also reported 21 per cent growth in revenues to Rs 17,907 crore in FY24 from FY23 while losses also narrowed by 41 per cent to Rs 2,358 crore, as per regulatory filings sourced from Tofler.
The Indian e-commerce market is expected to grow to $325 billion by 2030, according to the government’s Invest India portal. With 881 million users, India has the second-largest Internet user base in the world, and by 2030, it is expected to rise to the third position in the online retail industry. Currently, the e-commerce market in India is valued at $70 billion, which accounts for around 7 per cent of the country’s overall retail market.