In a groundbreaking achievement, Meesho, backed by Softbank, has proudly declared itself as the first e-commerce unicorn to achieve a consolidated profit after tax in the second quarter ending September 2023. This success positions Meesho at the forefront of profitability in the Indian e-commerce landscape.
While the specific profit figures for Q2 weren’t disclosed, Meesho showcased impressive financial performance in the first half of the current fiscal year. The company reported a substantial reduction in losses, amounting to Rs 141 crore, and marked a notable 37% YoY growth in revenue, reaching Rs 3,521 crore.
A Meesho spokesperson highlighted that the company not only recorded its inaugural full-quarter profitability in Q2 FY 2024 but has sustained this positive momentum into the festive season. Meesho stands out as the first horizontal e-commerce entity in India to achieve this remarkable feat, emphasizing its resilience and strategic positioning in the market.
Strategic Growth Factors:
Meesho attributed its business growth to multiple key factors, including a surge in shopping app downloads in 2022 and 2023, heightened transaction frequency among existing customers, diversification of the category mix, and a dedicated focus on enhancing monetization through valuable seller services.
According to data.ai, Meesho recorded a staggering 14.5 crore app downloads in 2023 in India alone. Furthermore, the company celebrated surpassing the monumental milestone of 500 million downloads in H1, FY 2023-24. Meesho’s growth in downloads is notably fueled by organic word-of-mouth momentum, fueled by the platform’s extensive selection and competitive pricing.
Meesho’s emergence as the first e-commerce unicorn with a consolidated profit in Q2 2023 solidifies its standing as a market leader. The strategic initiatives, including increased app downloads, diversified categories, and enhanced monetization efforts, have undoubtedly propelled Meesho to new heights in the competitive e-commerce landscape. As the company continues its positive momentum, eyes will be keenly watching its future strides in the dynamic Indian e-commerce sector.