Meesho, the e-commerce platform positioning itself for an initial public offering (IPO), has recently reported a significant increase in its operational metrics. Between April and December of this financial year, the platform recorded 1.3 billion orders, showcasing a remarkable year-on-year growth rate of 34%. This uptick underscores the evolving consumer behavior as more shoppers are opting for Meesho to address a diverse range of daily necessities.

In its latest annual report, the company attributed this growth to both the frequency and variety of purchases. Categories experiencing substantial gains include Home & Kitchen, Beauty & Personal Care, and Baby Essentials. Meesho’s anticipated IPO, aimed at raising approximately USD 1 billion at a valuation of USD 10 billion, is set against a backdrop of fluctuating investor sentiment. Earlier this year, Fidelity had notably reduced the startup’s valuation from USD 4.9 billion as of September 2021 to USD 3.5 billion.

Currently, Meesho processes an impressive average of 3.7 million orders daily, contributing to a free cash flow of INR 197 crore. The platform boasts over 110 million daily active listings and claims to have created around 85,000 jobs thus far, highlighting its vital role in the Indian e-commerce landscape.

Vidit Aatrey, CEO and Co-founder of Meesho, emphasized the centrality of consumers within their marketplace. “We offer consumers a wide assortment of over 110 million daily active listings at attractive price points, and make their e-commerce experience simple, engaging, and hyper-personalized through AI-driven recommendations.” According to Aatrey, the platform has served 187 million consumers over the past twelve months—making it the highest in terms of transactions among Indian e-commerce platforms.

Meesho’s growth has been supported by its robust logistics strategy, utilizing a network of over 6,000 partners via its in-house logistics platform, Valmo. This innovative approach enhances order fulfillment across more than 15,000 pincodes in India. Aatrey noted that Valmo effectively leverages the unutilized capacity of logistics partners, enabling better asset utilization and increased earnings through collaboration.

The use of Artificial Intelligence has been pivotal in driving Meesho’s growth trajectory. Sanjeev Barnwal, Founder and Chief Technology Officer, highlighted that AI underpins their GenAI-driven customer support, which provides assistance in six different Indian languages. “Our GenAI chatbot resolves 90 percent of user queries at one-fifth the cost,” Barnwal added, emphasizing its efficiency in improving both the Customer Effort Score (CES) and Customer Satisfaction (CSAT), compared to traditional human agents.

In terms of financial performance, Meesho reported a net loss reduction to INR 53 crore in FY24. Meanwhile, revenues grew by 33% year-on-year, reaching INR 7,615 crore. This contrasts sharply with the previous fiscal year, where the platform recorded a loss of INR 1,569 crore against revenues of INR 5,735 crore.