The SoftBank-backed firm - Meesho -  appears on track to post full fiscal year profitability sometime in FY25 or FY26 as it has claimed to have achieved profitability in June 2023. Furthermore, its adjusted losses plummeted 97 percent for the fiscal year ending March 2024  to Rs 53 crore.

Meesho also registered a 33 percent year-on-year growth in operating revenue in FY24. As per the company’s press release, it has reached Rs 7,615 crore compared to Rs 5,735 crore in FY23. Additionally, the firm’s revenue growth was fueled by a 36 percent growth in orders, wherein, home & kitchen, beauty & personal care, and baby essentials were top categories at the Bengaluru-based platform.

Meesho claimed that organic growth and efficiencies in logistics through its own firm, Valmo Logistics, helped it to reduce overall costs in the last fiscal year. This new vertical was officially launched back in February this year. However, the company hasn’t provided specific expense figures.

Additionally, shrinking 97 percent to Rs 53 crore in FY24 from Rs 1,569 crore in FY23, Meesho achieved a dramatic reduction in year-on-year losses. Also to note, the loss figure has been adjusted. Having said that, it is unclear which costs have been excluded. The firm stressed that share-based compensation paid to employees was not considered from the adjusted bottom line. It is worthy to note that Meesho also concluded its largest ESOP buyback program worth USD 25 million during the last month of FY24.

Currently, Meesho is the third-largest horizontal e-commerce platform in India, following Flipkart and Amazon. It claims 14.5 crore unique annual transacting users. Meeso cited that it has continued to be the most downloaded shopping app, with over 50 crore downloads.

To look at its competitors, Flipkart Internet reported 26.4% growth in its gross revenue, standing at Rs 70,542 crore in FY24 while Amazon India marketplace (B2B) unit has yet to disclose FY24 numbers. Furthermore, as per a credible report, Meesho secured a USD 275 million tranche in May this year which is a part of a larger funding round. This included both primary and secondary components. Additionally, the company is also working on relocating its domicile from the U.S. to India. However, there are no definitive details on the timeline for the company to go public.