📈 Meesho Achieves Positive Cash Flow
Meesho has made history as India's first horizontal e-commerce firm to achieve positive cash flow, hitting $27.6M in the fiscal year ending March 2024. This milestone comes alongside a 33% revenue boost, reaching $905.6M. Meesho’s adjusted losses dropped by 97%, shrinking from ₹1,569 crores to ₹53 crores ($6.3M). Meesho’s rapid growth is part of its strategy to serve underserved regions, with smaller city and town customers fueling 45% of its transactions.
💸 Quick-Commerce Competition Heats Up
The quick-commerce sector in India is challenging traditional e-commerce. Firms like Blinkit, backed by Zomato, and Zepto are rapidly expanding. Blinkit, for example, has scaled its warehouse operations, doubling its product offerings. These quick-commerce firms collectively expect around $6B in annual sales this year. By adding features like installment payments, fast returns, and split shipments, these firms aim to secure a larger urban user base.
🚚 Meesho Expands Delivery Control with Valmo
As part of its push to optimize logistics, Meesho introduced its own delivery service, Valmo, which now handles 35% of its shipments. Competing with Amazon and Flipkart, both managing 90% of their deliveries, Valmo helps Meesho reduce shipping costs. As India's retail landscape grows increasingly competitive, logistics have become essential to maximizing efficiency and reach, especially as more consumers from smaller towns engage online.
🌐 India’s E-Commerce Market Continues to Grow
India’s e-commerce sector is set to grow, with Bank of America predicting a user base expansion to 380M by 2027. New online shoppers are expected primarily from Tier-2 and Tier-3 cities, likely forming 75% of the fresh online consumer base. Meesho’s focus on smaller cities reflects this trend, with 145M transacting users in 2024. Meesho said, "This not only highlights the vast potential for e-commerce in India but also underscores our role in making e-commerce accessible to regions historically overlooked."
Is Meesho’s strategy a game-changer in Indian e-commerce?
