E-commerce firm Meesho is strategically venturing into the financial services sector and plans to expand its grocery delivery business in the upcoming financial year. This move, driven by a focused effort to reduce losses, aligns with the industry trend as online commerce platforms increasingly emphasize profitability.

“People in the know reveal that Meesho aims to establish a credit marketplace, sourcing borrowers for its lending partners, including banks and NBFCs, earning commissions on every disbursal,” stated the sources.

“We are experimenting with a lending platform, with a serious internal focus. It’s still early days,” shared an insider familiar with Meesho’s plans.

Meesho’s spokesperson highlighted the company’s diverse initiatives, stating, “Pilots into financial services and grocery are just a few examples of our efforts. Initiatives like providing sellers quicker access to payments are driving both financial inclusion and the growth of small businesses.”

The company, backed by SoftBank, is strategically reentering the grocery delivery service, planning to offer the service in one or two cities from April, with potential expansion based on performance.

“For e-commerce players with a large user base, offering financial services is understandable, but there are large investments required since it is a regulated space,” noted a senior fintech executive.

Meesho aims not just to act as a lead generator for lending partners but to build its credit underwriting models and a full stack of credit products.

“In our new initiatives, we are aiming for a higher growth rate in the new fiscal year,” disclosed sources, mentioning Meesho’s quest for a senior executive to lead the lending function and build an in-house credit risk and data science team.

“While initially focusing on processing merchant loans, Meesho aims to extend lending to consumers, particularly in non-metros, given the lower average selling price of products on the platform,” explained the sources.

“In 2023, Meesho narrowed its losses by 48% to Rs 1,675 crore, while operating revenue grew 77% to Rs 5,735 crore,” reported the company’s financial improvements.

“At a Flipkart townhall last week, group chief executive Kalyan Krishnamurthy told employees its grocery business grew by 50% on-year during 2023,” indicated the positive trajectory in the grocery segment.

“In August last year, Meesho said it had turned in maiden profits in July,” signaling a significant milestone for the company.

E-commerce firm Meesho is strategically venturing into the financial services sector and plans to expand its grocery delivery business in the upcoming financial year. This move, driven by a focused effort to reduce losses, aligns with the industry trend as online commerce platforms increasingly emphasize profitability.

“People in the know reveal that Meesho aims to establish a credit marketplace, sourcing borrowers for its lending partners, including banks and NBFCs, earning commissions on every disbursal,” stated the sources.

“We are experimenting with a lending platform, with a serious internal focus. It’s still early days,” shared an insider familiar with Meesho’s plans.

Meesho’s spokesperson highlighted the company’s diverse initiatives, stating, “Pilots into financial services and grocery are just a few examples of our efforts. Initiatives like providing sellers quicker access to payments are driving both financial inclusion and the growth of small businesses.”

The company, backed by SoftBank, is strategically reentering the grocery delivery service, planning to offer the service in one or two cities from April, with potential expansion based on performance.

“For e-commerce players with a large user base, offering financial services is understandable, but there are large investments required since it is a regulated space,” noted a senior fintech executive.

Meesho aims not just to act as a lead generator for lending partners but to build its credit underwriting models and a full stack of credit products.

“In our new initiatives, we are aiming for a higher growth rate in the new fiscal year,” disclosed sources, mentioning Meesho’s quest for a senior executive to lead the lending function and build an in-house credit risk and data science team.

“While initially focusing on processing merchant loans, Meesho aims to extend lending to consumers, particularly in non-metros, given the lower average selling price of products on the platform,” explained the sources.

“In 2023, Meesho narrowed its losses by 48% to Rs 1,675 crore, while operating revenue grew 77% to Rs 5,735 crore,” reported the company’s financial improvements.

“At a Flipkart townhall last week, group chief executive Kalyan Krishnamurthy told employees its grocery business grew by 50% on-year during 2023,” indicated the positive trajectory in the grocery segment.

“In August last year, Meesho said it had turned in maiden profits in July,” signaling a significant milestone for the company.