Ecommerce unicorn Meesho, which counts SoftBank, Peak XV, Fidelity Investments, Prosus & Naspers and Meta among its marquee investors, has reported an operating revenue of INR 5,735 Cr in FY23, a 77% increase over INR 3,232 Cr in the previous fiscal year.
In a blog on Friday (December 29), the startup announced that besides an increase in its sales, it has also managed to narrow its losses.
Fashnear Technologies, the parent entity of Meesho, reported a net loss of INR 1,675 Cr in FY23, a 48% drop from INR 3,248 Cr in the previous year.
It is pertinent to note that Meesho is yet to file its financial statements for the financial year 2022-23 (FY23) with the Ministry of Corporate Affairs (MCA).
The startup attributed the increase in revenue to increased transaction frequency of its existing customers, widening category mix and redoubled focus on improving monetisation through various value-added seller services.
Besides, Meesho claims to have achieved profitability in the Q2 of FY24. The startup in its blog said that it has reported an operating revenue of INR 3,521 Cr in the first six months of FY24, which is 37% higher than the previous year. It further added that during the same period, its loss stood at INR 141 Cr.
Meesho has attributed the increase in topline of FY24 to its app download numbers. The startup said it achieved 14.5 Cr app downloads in 2013, whereas it crossed the milestone of 500 Mn downloads in the first half of FY24.
The startup also launched Meesho Mall during FY23 to cater to users with the growing demand of branded products. The startup in the last six months said that Meesho Mall has processed around 2 Cr orders, with more than 75% coming from Tier II cities.
Besides increasing the revenue stream, the startup underlined that it has also reduced its burn by capping customer acquisition costs, server and infrastructure costs, among others.
“…While maintaining the high growth witnessed in FY 2022-23 and H1FY 2023-24, Meesho has been able to optimise the selling, general and administrative expenses (SG&A) significantly on the back of its high mindshare with consumers resulting in organic traction as well due to the significant operating leverage inherent to a marketplace business,” the blog read.
The development comes close on the heels when Prosus, one of the backers of Meesho, said that the startup was the brightest star in its India portfolio in the first half (H1) of the financial year 2023-24 (FY24).
As per half-yearly financial data released by Prosus, Meesho clocked an internal return rate (IRR) of 32% for the investor.
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, the startup has raised around a billion dollars in funding and is valued close to $5 Bn till date.
The startup which was the poster child of the social ecommerce startup later in 2022 pivoted to a marketplace place, thus throwing its hat in the ring in a space which is dominated by giants like Flipkart and Amazon.
The post Meesho’s FY23 Loss Halves To INR 1,675 Cr; Sales Zoom 77% To INR 5,735 Cr appeared first on Inc42 Media.