07 January 2023, Mumbai
In the 2022 financial year, Meesho’s expenses increased by five times. The main expenses were advertising, employee salaries, and employee benefits. Meesho saw its losses rise by six and a half times in the 2022 financial year. Although the e-commerce business’ revenue increased by 4.5 times during the same time period, an increase in expenses led to widening losses.
Meesho retails a wide range of products from clothing to lifestyle goods. In order to enable small businesses to get started selling on its platform and encourage business growth, Meesho does not charge commission for sales made by sellers on its e-commerce platform. This sets it apart from its larger sized competitors. The business instead makes money through advertisements.
Meesho is the market leader in the emerging social-commerce space. Based in Bangalore, and founded in 2015, it enables users to sell goods by sharing product listings with friends via Facebook, Instagram and the WhatsApp messaging app from Meta.
Meesho aims to dominate the market for basic commodities like apparel and home items frequently offered in unorganised retail, making up as much as 85 per cent of India’s retail market. The business serves the hordes of customers who are accustomed to shopping in corner stores but are now using the internet.
