BENGALURU: E-commerce disruptor Meesho Limited has cemented its position as a dominant player in the Indian “value commerce” segment, announcing that its annual transacting user (ATU) base has crossed the significant 250 million threshold.
In its first-ever earnings call following its listing, the company reported that it remains the most downloaded shopping app in India, driven by deep penetration into mass-market segments.
A key highlight of the call was the management’s focus on logistics cost optimization. CEO Vidit Aatrey explained that a recent spike in logistics costs was a deliberate strategic choice. Following the exit of a major logistics partner, Meesho rapidly scaled its in-house “Valmo” capacity to ensure service continuity during the festive season.
”We built some of this capacity in a very short period of time to service the demand… these [short-term contracts] were more expensive,” Aatrey noted. The company expects these costs to normalize over the next two quarters as it unwinds expensive short-term capacity and further automates its network.
Despite the temporary margin pressure, Meesho’s financial health remains stable with a cash balance of ₹7,277 crores. The company is also seeing significant traction in its ad monetization efforts. While specific numbers weren’t disclosed, the management indicated that the return on ad spend (ROI) for sellers has improved by approximately 50% over the last year.
NMV Growth: Q3 NMV reached ₹10,995 crores.
Operating Leverage: Adjusted EBITDA losses are expected to have peaked in the current quarter, with a projected decline as operating leverage kicks in from technology and marketing investments.
While apparel remains a staple, Meesho is successfully diversifying into newer categories like beauty, personal care, and home and kitchen. The “Meesho Mall” initiative, aimed at branded products, grew 70% Y-o-Y, attracting major brands like P&G and Nivea.
”Our goal is eventually to have each and every category that our customer wants available on Meesho,” Aatrey stated, highlighting the company’s ambition to be a one-stop-shop for the Indian consumer.
Looking forward, Meesho plans to maintain its “asset-light” approach while refining its logistics orchestration. The company believes that growth in the next 1–2 years will continue to be driven by new user additions before shifting toward increasing transaction frequency among its massive existing user base.