The social commerce site in India, Meesho has been attempting to change its strategies and track to compete and challenge horizontal e-commerce giants Amazon and Flipkart. The company backed by the Facebook group grew the digits to Rs. 793 crore which is 2.6%X in FY2021 from Rs. 307 crore in FY2020. However, it will take some time to analyse the growing e-commerce of Meesho. The company is an online marketplace service that includes order fulfilment and delivery to buyers on the platform and also connects them with the suppliers.
The Bengaluru-based company has recorded such a huge growth in its revenue after 3.8X during the fiscal previous FY21 and this is the second year for the company to have experienced such growth. The company is also backed by Naspers and has collected Rs 48.5 crore as its non-operating income from the assets of its finance in FY21the company faces the largest cost centre in logistics and manpower as it handles order fulfilment as well as the delivery side of the online marketplace, which is accounting for 48.2% of the company cost in FY21. As the orders scaled on the platform, the costs of these expenses also grew in-line amounting to Rs 645 crore in FY21 compared to Rs 260 crore in FY20.
Meesho is an Indian e-commerce company, headquartered in Bangalore, India.
While the COVID-19 disruptions ruined the fiscal, the company planned its strategic theory to boost the customer acquisition attempts in order to attract new and more users to their marketplace site, as both consumers and anticipated sellers were looking to connect with customers and run the business online. Out of Meesho’s annual expenses, advertising and sales promotion made up 31.7%, which has grown from Rs 217.4 crore in FY20 to Rs 424.2 crore in FY21. At the beginning of the COVID-19 pandemic and the lockdown that took place, Meesho has shed around 200 of their then base of employees, which was 700. The hiring operations for the company were to pick up later the same year as the staff costs came to 11.2% of the total annual cost, which grew to Rs 149 crore from Rs 107 crore in FY21 from FY20.
Meesho’s expenses on IT and Communication have increased around 2.4% according to the expense sheet. The figures have come to Rs 89.04 crore in FY21 from Rs 37.8 crore in FY20. Alongside, the company also wrote off loans that were given to the suppliers in need which were worth Rs 6.8 crore.
Meesho’s expenses on IT and Communication have increased around 2.4% according to the expense sheet.
The aim of the company for a sustainable and scalable business model is to take Meesho to unexpected places, including the company going up against online e-commerce giants like Flipkart and Amazon. But these giants are not holding up either, as companies like Flipkart are on the move to bring down Meesho. Flipkart has offered its shops that are offering to target the exact market Meesho is chasing, that is of the reseller part of the business. Other well-funded D2C platforms are making it hard for Meesho to justify other important aspects before the funds start to vanish. According to the reports, the company has also put a hold on its international expansion plans, as the competitive market is heating up.