-By Ankita Dutta.
In a highly competitive sector, e-commerce company Meesho is expanding quickly and becoming more profitable. It may achieve break-even before major competitors like Flipkart and Amazon in India.
Despite having a significantly lesser gross merchandise value than Flipkart Group and Amazon India, Meesho has around 55% of the number of active monthly customers as the market leaders, according to research by brokerage company Jefferies.
During CY22, Meesho’s platform achieved an amazing 120 million average monthly active users. Meesho increased MAUs by around 100 million over the past two years, significantly more than its peers.
Meesho reportedly performs well across all phases of the online purchase journey, including awareness (as measured by app downloads), contemplation (as measured by MAUs), and transaction (as assessed by MTUs), according to the report.
The Jefferies research stated that Meesho was the third-largest online retailer in India with a CY22 GMV of $4.5 billion and a 7% market share, increasing significantly more quickly than the total e-commerce market.
According to the survey, Meesho has carved out a position in a very competitive sector by offering customers a competitively priced, varied, and unbranded assortment. Strong volumes are produced by a practical reduction in seller commission, and MTUs (monthly transaction users) are competitive with market leaders.
The number of monthly transactional users for the company increased 26X over CY20–22, which led to a 9X increase in GMV. In 2022, it had 140 million active users who were transacting, up 2.2X from the previous year, and 1 billion orders. More than 600,000 small businesses have registered with the company in the past year, making it the fastest e-commerce platform in India to reach 1 million merchants.
Due to its commitment to providing an equitable environment for all sellers and its industry-first principles, such as zero commission, the company accomplished this achievement following just 8 years of its founding.
Meesho also makes the most contributions from e-commerce to the network of third-party logistics. The vast bulk of the 1.8 billion shipments each year that third-party logistics companies handle are handled by them.
Approximately 65% of Meesho’s products are 20–30% less expensive than those on other marketplaces. The company continues to prioritise users who are unmet by the established companies while aiming to maintain its position as the most affordable route for clients. Sixty-five percent of Meesho’s 100 million product listings are exclusive to the service. Customers from urban and Tier-1 markets across income groups are also using the site to find more economical shopping options.