Meesho is gaining traction and share as the fastest-growing ecommerce platform in India, according to the latest report by Alliance Bernstein.
The findings reveal that Meesho currently has a GMV run rate of over USD 5 billion and around 120 million average monthly active users. In December 2023, Meesho exhibited 32 per cent year-on-year (YoY) growth in monthly active users, much higher than 21 per cent growth for Flipkart and 13 per cent for Amazon.
The report further states that Meesho is gaining market share primarily through its strategic focus on tier 2+ cities due to its mass proposition and operating through a zero-commission model. Over the past 12 months, Meesho has witnessed a staggering 43 per cent YoY growth in order volume.
The company’s revenue also grew 54 per cent in this period driven by healthy take rates. Notably, repeat customers constitute a substantial share, exceeding 80 per cent.
Earlier this month, Meesho disclosed its audited performance for H1FY 2023-24, wherein the revenue from operations for the six months surpassed the entire annual revenues of FY 2021-22. Meesho also stated that it achieved a historic milestone by becoming the first horizontal ecommerce company in India to attain profitability in July 2023 and continues to remain so.
Key Highlights from the Report:
Market Share and Incremental GMV: Meesho accounts for 48 per cent share in total ecommerce downloads in India, and its MAU base demonstrates a robust 29 per cent YoY growth. This positions it well to continue gaining market share and incremental GMV going forward.
Order Volume and Revenue Growth: Over the last 12 months, Meesho has experienced a 43 per cent YoY growth in order volume, coupled with a 54 per cent growth in revenue, driven by healthy take rates.
Category growth: Apparel and fashion comprise 50 per cent of Meesho’s GMV. BPC and Home and Kitchen also have around 8-10 per cent GMV each.
Market Differentiation: Meesho’s accelerated growth is attributed to its mass positioning, inclusivity and zero-commission model. The company has strategically positioned itself to empower small sellers while offering unbranded products at competitive prices. Approximately 80 per cent of the sellers on the platform are retail business owners and around 95 per cent of the selection is unbranded.
Anticipated Market Gains: With a current GMV run rate exceeding USD 5 billion and an upward trajectory in downloads, Meesho is poised to be the key gainer in the Indian e-commerce landscape, gaining incremental market share.
Meesho’s commitment to making ecommerce inclusive and accessible for every user has positioned it as the fastest-growing platform in India.
The AllianceBernstein report reinforces Meesho’s standing as a market leader and anticipates further market gains in the evolving e-commerce ecosystem.
