E-commerce firm Meesho on Monday said it has turned profitable at a consolidated profit after tax level, driven by rising order volume and revenue.

“The company has attained profitability at a consolidated PAT level, encompassing all costs (including ESOP), across all divisions and categories. Setting out on its ambitious path to profitability last year, Meesho accomplished this well ahead of the expected timeline as of July," the Bangalore-based firm backed by Softbank and Meta said.

While Meesho has not disclosed absolute numbers, its order volumes have grown by 43 per cent, culminating in over a billion orders.

Around 85 per cent of the orders have come from returning users, signifying user retention. Revenue in the last 12 months has grown by 54 per cent, on the back of a rise in order volume.
There has also been an 80 per cent year-on-year reduction in customer acquisition cost and marketing spending along with a 60 per cent reduction in technology costs, signifying operational efficiency.

“As the first horizontal e-commerce platform to achieve profitability in India, we remain committed to driving sustainable growth, democratising e-commerce for everyone and unlocking the true potential of India’s heartland,” said Vidit Aatrey, CEO and founder at Meesho.

The platform has seen over 140 million unique transacting users in the last 12 months. It has a current run rate of 3.5 million orders per day.

Public offer

The e-commerce platform had earlier indicated that it would explore listing once the company becomes profitable. With the profit milestone achieved, an IPO is under consideration in the next 12-18 months.

“We feel that the growth, scale and profitability are there (for an IPO), but you also want to make sure that there is enough of a track record for the market investors to look at,” said Dhiresh Bansal, CFO Meesho.