E-commerce startup Meesho nearly halves its losses by 48% to Rs 1,675 crore in FY23, from Rs 3,248 crore a year ago, as it reined in expenses like customer acquisition, server and infrastructure costs, the company said in a blog post.
Revenue from operations jumped 77% over the previous year to Rs 5,735 crore in FY23, boosted by increased transaction frequency of existing customers, widening category mix and improving monetisation through various value-added seller services, it said.
“Meesho has been able to optimise the selling, general and administrative expenses (SG&A) significantly on the back of its high mindshare with consumers resulting in an organic traction as well due to the significant operating leverage inherent to a marketplace business,” it said in the post.
The platform’s SG&A costs improved to 20% of revenues in H1FY24, from 53% in H1FY23, while increasing user base and order frequency. Meesho aims to scale up its seller base to 10 million by 2027, from 1.5 million now.
The company is yet to file its FY23 financials with the RoC.
In order to turn profitable, Meesho has fired more than 700 employees since April 2022 to lower its overall expenses. In its latest layoff round in May this year, the company fired 251 employees or about 15% of its workforce.
Meesho has so far raised over $1 billion in 10 rounds, as per Tracxn data. Earlier this year in August, Meesho’s US-based investor Fidelity Investments increased the face value of its investment in the company by 14.3% to $43.24 million, effectively valuing the company at around $5 billion.