In FY21, nearly INR 500 Cr of loss faced by Meesho after 2X Surge in expenses

• ByStartupStory     |    March 8, 2022

In the financial year ending, on March 31, 2021, Meesho- a social commerce giant witnessed a 158% rise in its sales revenue. The Meta-backed startup had witnessed a rise by 2.5X from INR 305.9 Cr in FY20, a revenue has been posted from sales worth INR 792.8 Cr in FY21. The startup generated a slight jump from INR 41.7 Cr in FY20 in the revenue to INR 45.8 Cr from its other income in FY21. The startup has generated a 140% jump from INR 348.7 Cr in FY20 to a total revenue of INR 838.6 Cr in FY21, with the earning from revenue and other income combined. 

The expenses of the startup almost doubled from FY20 to FY21. It’s a Bengaluru-based startup which as per media reports shelled out a 2X jump from INR 655.3 Cr, now it is eyeing for a potential IPO in 2023 by spending INR 1,337.3 Cr in FY21. In order to earn INR 0.59 paise, Meesho has spent around INR 1. Salaries of employees, PF contribution, gratuity and other employee welfare benefits were pegged at a noticeable jump from INR 106.8 Cr in FY20 to INR 149.3 Cr. Among its other expenses Meesho counts rent, telephone postage, advertisement, for further breakdown. The startup has spent for advertising and promotion activities a whopping INR 424.1 Cr in FY21 as compared to INR 217.4 Cr it did in FY20.

After tax of INR 498.6 Cr in FY21, it witnessed a total loss after it saw a 62.5% jump from INR 306.6 Cr in FY20. Meesho is a social commerce platform founded by Vidit Atrey and Sanjeev Banwal in 2015. It enables individuals and small businesses to sell their products by sourcing it from resellers and then selling it to potential customers over Whatsapp, Facebook, Instagram, and other social media platforms. Last year, in three funding rounds the startup has received funding close to $900 Mn. Along with SoftBank, Prosus Ventures, Facebook, among others at $5 Bn valuation, Meesho last raised $570 Mn led by Fidelity Management and B Capital Group. 

For sometime Meesho had dominated the social commerce place. Dealshare, Flipkart-backed Shopsy, Shopee, B2B unicorn Udaan are now been competed against the likes of new entrants to the unicorn club by Meesho.

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