Meesho Secures Leading Position in Prosus’ Indian Portfolio for H1 FY24

• ByStartupStory     |    November 30, 2023

In the first half of the financial year 2023-24 (FY24), Meesho, an e-commerce major, emerged as a standout performer in Prosus’ India portfolio, securing an internal return rate (IRR) of 32%, according to half-yearly financial data released by the investment giant. Meesho ranked third globally in Prosus’ startup portfolio, following Remitly and iFood. ElasticRun, a homegrown B2B e-commerce solutions provider, secured the second position with an IRR of 31%, despite almost doubling its loss to INR 618.82 Cr in FY23.

PayU India, a fintech giant, also showcased robust performance, recording returns exceeding 30%. PayU India demonstrated significant improvements in profitability, achieving a 32% year-on-year growth in revenue to $497 Mn in H1 FY24. Consolidated trading losses improved by 72.5% YoY to $22 Mn during the same period. Prosus highlighted PayU’s strong growth in consolidated payments and fintech vertical in its investor presentation.

Edtech platform Eruditus reported an IRR of 22%, while Swiggy, a foodtech decacorn, achieved a 7% IRR in H1 FY24. Prosus attributed Swiggy’s high returns to substantial growth in Gross Merchandise Value (GMV) and a reduction in trading losses. Swiggy’s core food-delivery business exhibited a 17% growth, delivering a GMV of $1.43 Bn in the first six months of the year. The core food-delivery EBITDA losses in H1 FY24 decreased by 89%, driven by improvements in contribution margin and operating leverage.

However, the performance was not uniform across all investments in the Prosus portfolio. PharmEasy, a prominent e-pharmacy, emerged as the biggest underperformer with an IRR of -41% in H1 FY24. Troubled edtech decacorn BYJU’S also faced challenges, reporting an IRR of -24% during the same period. Prosus marked down BYJU’S valuation on its books to under $3 Bn, signifying an 85% decline from its previous valuation of $22 Bn.

The mixed performance reflects the evolving market sentiment and the renewed focus of startups on profitability and sustainability. Despite this, Prosus reported an operating loss of $415 Mn in H1 FY24, compared to $329 Mn in H1 FY23. The losses were largely attributed to the recognition of impairment loss related to edtech investments.

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