Facebook-backed Meesho witnesses 14x rise in revenue in FY19
Bengaluru-based social commerce platform Meesho, which operates under its parent company Fashnear Technologies Private Limited has reported losses of Rs 100.42 crore for the fiscal year 2019. The company had reported a loss of Rs 4.9 crore in FY18.
According to its filings with the Registrar of Companies (RoC), accessed by YourStory, Meesho reported a revenue of Rs 84.88 crore for FY19. The revenue has increased by 14x from Rs 6.01 crore in FY18.
Meesho’s employee compensation expenses have increased to Rs 1.07 crore in the current fiscal from Rs 4.86 lakh in FY18.
Founded by IIT-Delhi alumni Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho, which literally means ‘Meri Shop’ (my shop). The social commerce platform provides potential entrepreneurs with a virtual shop, who otherwise would find it difficult to start a business. At present, Meesho has two million sellers across 700 towns in India on its platform. It also provides distribution access to another 20,000 manufacturers through its platform.
Meesho earns its revenue from the services of a marketplace. Revenue from operating the marketplace is recognised based on the commission, shipping fee, and penalty terms, as per contract. Revenue is recognised immediately upon the shipment of goods to the buyer and is reduced to the extent returned.
The platform that helps resellers and emerging brands build businesses using social media, has raised funding of undisclosed amount from social network giant Facebook in June 2019. Meesho is the first India-based startup that has bagged investment from Facebook.
Earlier in August, Meesho raised Series D funding of $125 million in a round led by Naspers Ventures. Meesho’s existing investors Facebook, SAIF, Sequoia, Shunwei Capital, RPS, and Venture Highway, along with former Vodafone Group CEO Sir Arun Sarin also participated in the round.
Till date, the startup has raised $215.2 million in funding.
Meesho is available in more than seven languages other than English, and about 40 percent of its daily usage comes from a non-English speaking audience.
(Edited by Suman Singh)