Meesho sees both losses and revenue rise in FY22

By

Isabelle Crossley

Published
Jan 4, 2023

Meesho saw its losses rise by six and a half times to total Rs 3,247 crore 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, which specialises in social commerce, reported a revenue total of Rs 3,232 crore in the 2022 financial year, according to regulatory filings accessed by business intelligence platform Tofler, ET Retail reported. The business had reported a revenue total of Rs 792 in the 2021 financial year.
 
In the 2022 financial year, Meesho’s expenses increased by five times to total Rs 6,607 crore, up from Rs 1,337 crore in the 2021 fiscal. The main expenses were advertising, employee salaries, and employee benefits. 

Meesho has been vocal about the schemes it has implemented to promote the wellbeing of its employees and has launched health breaks for its workers among other initiatives. The business spent Rs 509 crore on employee benefits in the 2022 fiscal compared to in the 2021 fiscal where it spent Rs 149 crore, ET Bureau reported. 
 
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, such as Amazon India and Flipkart, which do charge commission. The business instead makes money through advertisements.