Meesho, an e-commerce company backed by Softbank, has achieved consolidated profitability in July. This success can be attributed to a substantial increase in order volumes and revenue, according to a senior company representative’s statement on Monday. Vidit Aatrey, the Founder and CEO of Meesho, informed PTI that the company’s profitability was bolstered by a remarkable 43% surge in order volumes and an impressive 54% rise in revenue over the past 12 months.
“We are humbled and proud to witness Meesho’s bold aspiration of becoming profitable come to fruition. As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratizing e-commerce for everyone and unlocking the true potential of India’s heartland,” Aatrey said.
He mentioned that within the last 12 months, a notable 85% of orders originated from returning users, showcasing the platform’s commendable customer retention rate. While refraining from divulging specific financial figures, he highlighted that the company has achieved profitability at a consolidated level of Profit After Tax (PAT). This achievement encompasses all costs, including ESOP, across the diverse divisions and categories of the company.
“The company has attained profitability at a consolidated PAT level, encompassing all costs (including ESOP), across all its divisions and categories. Setting out on its ambitious path to profitability last year, Meesho accomplished this industry-first feat well ahead of the expected timeline, as of July’23,” Aatrey said.
He mentioned that Meesho continues to hold its position as the most downloaded shopping app in India, catering to a substantial count of more than 140 million distinct users engaging in transactions over the past 12 months.
“Meesho’s continues to gain momentum, with its current run rate soaring to an impressive 3.5 million orders per day. What sets Meesho apart as a true industry leader is its unparalleled capital efficiency, attributed to the structural advantage of its innovative and asset-lite business model,” Aatrey said.