Meesho Attains Profitability In July, Overtakes Flipkart And Amazon
This comes on the back of 43% growth in orders and 54% growth in revenue in the last 12 months, said CEO Vidit Aatrey.
Homegrown e-commerce platform Meesho has reported profitability in the month of July, overtaking giants Flipkart India Pvt. and Amazon Inc.
"Thrilled to announce that Meesho has achieved a historic milestone —profitability (Ebitda and PAT profitable) as of July 2023, making us the first horizontal e-commerce company in India to do so," said Vidit Aatrey, chief executive officer of the company, in a Twitter post on Monday.
This comes on the back of 43% growth in orders and 54% growth in revenue in the last 12 months, he said.
However, the company didn't disclose the exact profit figure.
In May this year, Meesho fired about 251 employees, constituting 15% of the employee base, as part of a restructuring aimed at becoming "a leaner organisational structure to achieve sustained profitability".
Meesho competes with giants such as Flipkart and Amazon in India's e-commerce sector. While it is much smaller in size with regards to gross merchandise volume as compared with Flipkart and Amazon India, its average monthly active user count is roughly 55% of the incumbents.
Softbank Group and Meta-backed Meesho was already contribution margin-positive from pre-marketing and indirect spends and was on track to achieve Ebitda breakeven over 2023, according to a Jefferies note in April.
Amazon India and Flipkart, with over a decade of operations, are still running into losses.
Amazon's India units posted a loss of Rs 3,649 crore in FY22, according to data from Tofler. Flipkart posted a loss of over Rs 7,800 crore, according to regulatory filings cited by news agency PTI in November last year.
