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Indian ecommerce startup, Meesho, announced that it has turned profitable on a consolidated basis in July, with a considerable growth in order volume and revenue. The company also revealed the plans for a potential stock market debut within the next 12-18 months.
Meesho Founder and CEO Vidit Aatrey told PTI that a 43% surge in order volumes and 54% increase in revenue in the last 12 month contributed to the profitability of the company.
Meesho competes with Amazon and Walmart’s Flipkart in India’s fast-growing e-commerce market, with its website becoming popular by targeting smaller towns and cities with unbranded products like clothes and cosmetics. As per the PitchBook data, the company was last valued at nearly $7 billion.
“We are humbled and proud to witness Meesho’s bold aspiration of becoming profitable come to fruition. As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratizing e-commerce for everyone and unlocking the true potential of India’s heartland,” Aatrey told PTI.
He also added that 85% of the orders have come from returning users in the last 12 month which reflects the customer retention rate of the platform.
For the first half of the year (January-June), Meesho’s revenue surpassed $400 million, with Chief Financial Officer Dhiresh Bansal expressing confidence that it will exceed $800 million by year-end. Meesho, co-founded by Indian Institute of Technology graduates Vidit Aatrey and Sanjeev Barnwal, has managed to secure over 1 billion orders over the past year, stated the reports.
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