Meesho eyes EBITDA breakeven this year

By

Isabelle Crossley

Published
Apr 25, 2023

E-commerce platform Meesho expects to achieve breakeven in terms of earnings before interest, tax, depreciation, and amortisation this calendar year. The business reported 120 million average monthly active users in 2022 as it raised significant funding. 

The business expects its average monthly active users to continue to increase in 2023 which should lead to increased revenue, the New Indian Express reported. Over the past two years, Meesho added approximately 100 million monthly active users which is a far higher number than its larger scale competitors, suggesting that it is growing at a fast pace. 
 
Meesho gains the majority of its income from fulfilment charges and advertisements. The business’ fulfilment charges are significantly lower than its competition including e-commerce giants Flipkart and Amazon India and this enables Meesho sellers to offer products for lower prices than their competition on other platforms. 

Meesho is backed by Marquee investors including Fidelity, Softbank, Prosus, Meta, B Capital, Sequoia Capital, and Elevation. The business has raised approximately $1.1 billion in funding thus far and currently has a cash buffer of $400 million, according to the business.
 
Revenue from advertising on Meesho currently stands at 6% of its total revenue, according to the New Indian Express. The business, which focuses on fashion and lifestyle products, saw its monthly transacting user count rise by 26 times from the 2020 to 2022 calendar year.