Meesho's Path to Profitability: A Digital Leap Forward

Softbank-backed Meesho has reduced its losses to Rs 53 crore and increased its revenue by 33% to Rs 7,615 crore in FY24. The company is the first Indian e-commerce firm to achieve profitability and generate positive free cash flow, focusing on long-term metrics.

In a remarkable financial turnaround, Softbank-backed e-commerce platform Meesho has reported a significant reduction in its losses to Rs 53 crore, while witnessing a 33% surge in revenue, reaching Rs 7,615 crore during the financial year FY24. This development marks Meesho as the first horizontal Indian e-commerce company to achieve profitability in FY24 and to generate a positive free cash flow of Rs 197 crore.

The company's annual report highlights impressive metrics, including a 31% increase in order growth and a boost in revenue attributed to increased transactions and loyal customer engagement. Meesho's strategic focus on driving efficiencies through logistics and leveraging Generative AI and Machine Learning has improved user experience and customer support.

Meesho Founder and CEO Vidit Aatrey emphasized the company's commitment to tracking Long Term Free Cash Flow (FCF) per share as a key indicator of business health, prioritizing shareholder value by focusing on true cash flow metrics over traditional financial indicators like EBITDA and PAT.

(With inputs from agencies.)