Ecommerce major Meesho on Friday announced the financial results for FY23. In FY23, the Softbank-backed company posted a 77% surge in its revenue to ₹5,735 crore as against ₹3,240 crore in FY22, according to the blog post by the company. The company is yet to file financial results with the Ministry of Corporate Affairs (MCA).
The company attributes the increased transactions by customers, widening category mix and focus on improving monetisation to be reasons behind the growth in revenue.
Notably, during the year under review, the company's losses also narrowed by 48% to ₹1,675 crore as against ₹3,248 crore in FY22.
"Our continued topline growth was further augmented by operating leverage and an increased focus on efficiencies across a number of cost items, be it customer acquisition cost, server and infrastructure cost and many others," the company says in a statement.
Meanwhile, in H1 FY24, the company's revenue surged by 37% year-on-year to ₹3,521 crore and the losses narrowed by 90% year-on-year to ₹141 crore. The company claims to turn profitable in Q2 of FY24 and remains cash flow positive for the entire period of H1 FY24.
"While maintaining the high growth witnessed in FY 2022-23 and H1FY 2023-24, Meesho has been able to optimize 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. SG&A has improved from 53% of revenues in H1FY 2022-23 to 20% in H1FY 2023-24 while we continue to grow our user base and frequency," the company says.
Meesho recorded 14.5 crore app downloads in 2023. In H1 FY23, the company crossed 500 million downloads, according to the blogpost.
The company aims to onboard 10 million small businesses by 2027.
The development comes as the Bengaluru-based company faced valuation cuts by US investors over the last few months. In May this year, Fidelity Investments, a US-based asset management company marked down the valuation of the e-commerce platform Meesho by nearly 10% to $4.4 billion. Fidelity, which earlier owned 33,000 shares in Meesho via the Fidelity Central Investment Portfolio, slashed the value of its investment by 9.6% to $2.34 million from $2.59 million.
Fidelity Investments had co-led a Series F funding of Meesho worth $570 million, at a valuation of $4.9 billion in 2021.
Meanwhile, earlier this year, Meesho laid off 251 employees or 15% of its workforce in the second round of layoffs this year. The company had earlier cut its workforce by 150.
