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E-commerce platform Meesho has recorded 35 per cent year-on-year order growth fuelled by demand from consumers from smaller cities, and GenZ. The Bengaluru-based platform saw nearly 175 million annual transacting users for the year 2024 with 210 million downloads, underscoring the strong traction from Tier III and Tier IV towns, with about 50 per cent of its user base are from Tier IV. The growth is driven by value-seeking shoppers, who are prioritising affordability in discretionary categories such as fashion, beauty, personal care, and home essentials.
The platform saw surge in consumption and growing e-commerce adoption in Tier 2+ which have fuelled cumulative 70 per cent y-o-y order growth across key categories like beauty & personal care (BPC), and home & kitchen (H&K). In FY 2023-24, the company became the first horizontal e-commerce platform to generate operating cash flow of ₹232 crore for the full year. Revenue from operations in the same period rose by 33 per cent, reaching ₹7,615 crore.
Gen Z, now forming one-third of Meesho’s user base, has fueled demand for sustainable and self-care products. The company is focusing on GenZ by enhancing its offerings such as multi-lingual voice bot feature, which already has an 80 per cent resolution rate. Additionally, the platform’s integration of AI-powered product recommendations, vernacular voice search, and AI-driven translations for product descriptions has played a crucial role in driving orders.
Meesho Mall, the platform’s dedicated space for branded products, recorded a remarkable 117 per cent surge in orders, making it a preferred destination for affordable, high-quality branded goods. Brands such as Lotus, Joy, Renee, and Dollar witnessed significant growth, with order volumes increasing by up to six times. Comments.
