Meesho Emerges as India’s Fastest-Growing Ecommerce Player, Reports AllianceBernstein

• ByStartupStory     |    January 27, 2024

In a recent report by AllianceBernstein, Meesho, the Bengaluru-based ecommerce firm, has been identified as the fastest-growing player in the Indian ecommerce segment. The report attributes Meesho’s remarkable growth to its innovative zero-commission model and a strategic focus on Tier II cities.

According to the findings, Meesho has demonstrated a robust 32% year-on-year (YoY) growth, surpassing its competitors Flipkart and Amazon India, which exhibited growth rates of 21% and 13%, respectively. The SoftBank-backed company also commands a substantial 48% share in total ecommerce downloads in India.

Apparel and fashion constitute approximately 50% of Meesho’s Gross Merchandise Value (GMV), with other categories such as beauty and personal care, and home and kitchen contributing 8-10% to the GMV.

The report notes a significant increase in order value on the Meesho platform over the last 12 months, showcasing a healthy 43% YoY growth and an impressive 80% of repeat customers. AllianceBernstein highlighted Meesho’s current GMV run rate exceeding $5 billion, positioning it as a key gainer in the Indian ecommerce landscape with incremental market share.

“Meesho is poised to be the key gainer in the Indian ecommerce landscape, gaining incremental market share,” states AllianceBernstein in its report.

Meesho made history by becoming the first ecommerce unicorn to post a consolidated net profit in the second quarter of FY24, signaling a milestone achievement for the company. While the specific profit amount for the July-September period was not disclosed, Meesho managed to narrow its losses to Rs 141 crore during the first half of the current financial year, concurrently achieving a 37% YoY increase in revenue, totaling Rs 3,521 crore.

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