BENGALURU: Bengaluru-based Meeshowhich competes against giants such as Amazon India and Flipkart, on Wednesday said it has become the first horizontal ecommerce company in the country to generate positive free cash flow at Rs 232 crore in the financial year ended March 2024.
Operational revenues grew by 33% to Rs 7,615 crore. Adjusted losses for the period narrowed by 97% from Rs 1,569 crore to Rs 53 crore. The company had recorded a marginal profit in the second quarter of FY24.
The company also reported adjusted losses narrowing by 97% from Rs 1,569 crore to Rs 53 crore. This excludes one-time expenses on employee stock options related costs.
The growth in revenues were attributed to a 36% growth in orders delivered, year-over-year. “This was primarily driven by an increase in our annual transacting users as well as higher order frequency of our existing loyal customers,” the SoftBank-backed startup said in a blog post.
The company reported 145 million unique annual transacting users (ATUs) in FY24. “Consumers are not just buying multiple items within the same category, but are also turning to Meesho for a diverse range of their daily needs… We continued to be the most downloaded shopping app overall in India, and also crossed the overall 500 million install mark during the course of FY24,” it added.
Apart from user growth, use of generative artificial intelligence and machine learning for product discovery, improved in-app experiences and customer service helped with the financial improvement.
New initiatives such as the “scan and pack” program have enhanced fulfillment accuracy by requiring sellers to capture product images before dispatch. If there’s a mismatch, the AI system prevents the generation of a shipping label, leading to about 42% seller claim reduction, Meesho said.
“By adopting lean cost structures and optimizing operational efficiencies, we will maintain our ability to offer the widest selection at everyday lowest prices,” the company added.
Founded by Vidit Aatrey and Sanjeev Barnwal in 2015, unlike its rivals, Meesho does not charge any commissions from sellers. It generates revenue from advertising and logistics services for sellers.
