Meesho cuts down losses by half as revenue rises 48%

Meesho reported a significant improvement in its financial performance in the first quarter of FY27, with its net loss nearly halving year-on-year while revenue grew 48.3% during the period.

The ecommerce marketplace posted a net loss of Rs 132.8 crore in Q1 FY27, compared with Rs 289.3 crore in the corresponding quarter of the previous fiscal year. Revenue for the quarter stood at Rs 3,713 crore, marking a 48.3% year-on-year increase. The company attributed the revenue growth to improved delivery conversions, supported by lower cancellations.

Meesho’s net merchandise value (NMV) rose 34% year-on-year to Rs 11,614 crore, driven by continued growth in users and higher engagement on the platform, said the company.

Annual transacting users (ATUs) increased 29% year-on-year to 274 million, while purchase frequency improved to 10.3 transactions per user annually.

The company said placed orders grew 29% year-on-year to 725 million during the quarter, reflecting continued expansion across its marketplace.

Meesho Chief Financial Officer Dhiresh Bansal said, “This quarter also marked our strongest contribution margin and marketplace adjusted EBITDA since listing, despite higher fuel costs and minimum wage increases in certain states, reflecting the structural improvements we've made across our platform.”

On the impact of artificial intelligence (AI), the company said it is becoming foundational across every layer of its business, from product discovery and seller growth to logistics and engineering. In the first quarter, Meesho processed nearly 725 million orders, averaging more than 90 orders every second.

“As AI continues to lower the cost of innovation, we believe it will help us build better products faster while maintaining disciplined capital allocation and creating long-term value,” the CFO remarked.

On the future outlook, Meesho said it continued to remain watchful of the macro environment as crude prices have moderated this quarter resulting in unchanged retail fuel prices. It further noted that the direct impact on its business remains limited and has not seen meaningful price increases on the platform.