E-commerce unicorn Meesho has recorded 1.3 billion orders in the first nine months of this financial year, marking a 34% year-on-year growth, the company said in its annual report. During this period, it recorded 187 million annual transacting users, compared to 156 million in the entire FY24.
Meesho also said its in-house logistics arm, Valmo, powered more than 50% of its orders last year. Valmo was launched last year, which is a decentralised network of micro-entrepreneurs who provide first-mile, last-mile or sorting solutions to Meesho sellers, unlike third-party logistics (3PL) players who provide end-to-end services.
The growth is primarily driven by categories like home and kitchen, beauty and personal care, and kids and baby care, the report said. Meesho has seen significant growth in these categories in the last few years, which helped it turn its operating cash flow positive in FY24 to Rs 232 crore from a negative Rs 2,303 crore in FY23.
Meesho’s selling, general, and administrative (SG&A) expenses as a percentage of revenue also declined significantly in FY24. As a result, adjusted losses narrowed by 97% from Rs 1,569 crore to Rs 53 crore.
“This success was fueled by efficiencies across multiple areas, including logistics, as well as the strategic use of generative AI and machine learning to enhance product discovery, improve the in-app experience, and provide round-the-clock customer support,” the report said.