Citing Meesho's Chief Financial Officer Dhiresh Bansal, the report said that Meesho will consider public listing in the next 12 to 18 months provided the market situation remain benign.
Founded in 2015, SoftBank-backed Meesho recorded profits for the first time last month. Its revenue between January-June was more than $400 million, which is 40% more than the corresponding period last year, and Meesho expects it to cross $800 million by the year end.
In the last 12 months, Meesho's revenue has grown by 54%, on the back of a rise in order volume. The horizontal e-commerce platform has also seen an 80% year-on-year reduction in customer acquisition cost and marketing spending along with a 60% reduction in technology costs, signifying operational efficiency.
Valued at nearly $7 billion, Meesho raised about $1 billion from investors including Prosus, B Capital and Fidelity. The startup aims to make e-commerce accessible to all by including online shoppers in small Indian cities where value conscious buyers are often overlooked by e-commerce giants like Amazon and Flipkart.
To rival Meesho, Flipkart has launched a "zero-commission" platform called Shopsy, whereas Mukesh Ambani's Reliance Industries is partnering with Chinese fashion brand Shein to launch cheap fashion lines in India. Additionally, Reliance is reportedly planning a zero-commission marketplace for cheap fashion products.
Meanwhile, Meesho has began pursuading big brands, including FMCG giants ITC and Marico as well as personal care company Mamaearth, all of which are charged up to 5% of the order value as commission. However, small merchants continue to sell on Meesho without commissions.
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