Meesho reduces monthly cash burn to $ 4 Mn in December 2022
- ByStartupStory | January 3, 2023
According to a top company executive, e-commerce unicorn Meesho reduced its monthly cash burn to $4 million (Rs 30 crore) in December while still having around half a billion dollars in its bank account.
In a year when investors across the tech start-up world demanded that portfolio companies demonstrate a clear path to profitability, the Softbank-backed company announced that it has reduced its monthly cash burn by 90% from $40 million (Rs 300 crore) in January this year.
Meesho’s Chief Financial Officer Dhiresh Bansal said, “The massive loss in FY22 was due to large investments made during the beginning of the year towards new customer acquisition and a pivot from a reseller-led business model to a consumer marketplace.”
As a result, the e-commerce startup reported that its mobile app had 273 million instals by 2022. Its annual transacting users increased by approximately 80% to 140 million, while the company saw a record 910 million orders in CY22, an increase of 135%.
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