{"id":642851,"date":"2024-10-30T09:10:39","date_gmt":"2024-10-30T06:10:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/meesho-claims-indian-e-commerce-first-with-positive-cash-flow\/"},"modified":"2024-10-30T09:10:39","modified_gmt":"2024-10-30T06:10:39","slug":"meesho-claims-indian-e-commerce-first-with-positive-cash-flow","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/meesho-claims-indian-e-commerce-first-with-positive-cash-flow\/","title":{"rendered":"#Meesho claims Indian e-commerce first with positive cash flow"},"content":{"rendered":"
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Meesho has become India\u2019s first horizontal e-commerce firm to generate positive cash flow, marking a significant shift in a market where profitability has long remained elusive even as new competitive threats emerge.<\/p>\n

The SoftBank and Prosus-backed startup, which serves customers in smaller Indian cities and towns, reported positive operating cash flow of \u20b9232 crores ($27.6 million) for the financial year ending March 2024, while growing operating revenues by 33% to \u20b97,615 crores ($905.6 million). Its adjusted losses fell 97% from \u20b91,569 crores to just \u20b953 crores.<\/p>\n

Meesho\u2019s growth remains faster than the e-commerce\u2019s surge in India. India\u2019s e-commerce industry growth is expected to moderate to 17% in 2024 before accelerating to 20% in 2025, Bank of America analysts said this week. This relatively slower growth is attributed to consumption slowdown impact and slower app<\/a>arel industry growth.<\/p>\n

Flipkart\u2019s marketplace arm grew its revenue by 21% to $2.12 billion in the financial year ending March, it disclosed in filings this week. Its losses fell 41% to $280.4 million. <\/p>\n

The Indian commerce market is simultaneously being reshaped by quick commerce firms in urban cities. Blinkit, Zomato\u2019s quick commerce arm, has expanded the network of so-called dark stores \u2014 the warehouses where it stores the inventory \u2014 and increased SKUs from 4-5,000 to over 10,000. The platform has also introduced new features including payment installment options for purchases above \u20b93,000 ($35.7), 10-minute returns for clothing and footwear, and split shipments to expand its reach.<\/p>\n

Quick commerce players \u2014 including BlinkIt, Nexus-backed Zepto, Prosus-backed Swiggy\u2019s Instamart and Tata-owned BigBasket \u2014 are projecting to do annual sales of about $6 billion this year, according to a TechCrunch analysis. <\/p>\n

For established players, the battle increasingly also appears to be about controlling the full stack. Both Amazon and Flipkart now handle about 90% of their deliveries in-house, while Meesho has launched its own logistics service called Valmo to optimize shipping costs. Valmo is handling roughly 35% of all Meesho orders, Bank of America says. <\/p>\n

The shift comes as competition for India\u2019s next hundred million internet shoppers intensifies. Meesho reports that 45% of its customers now come from tier 4 cities and beyond, with 145 million unique annual transacting users \u2013 representing approximately 10% of India\u2019s population.<\/p>\n

\u201cWe\u2019re also seeing a substantial influx of new-to-e-commerce users, demonstrating our success in acquiring customers from India\u2019s underserved markets,\u201d Meesho said in a statement. \u201cThis not only highlights the vast potential for e-commerce in India but also underscores our vital role in making e-commerce accessible to regions that have historically been overlooked.\u201d<\/p>\n

Bank of America expects around 120 million new online shoppers to enter the e-commerce market over the 2024-27 period, with the base likely to reach 380 million. Approximately 75% of these new users are expected to come from Tier-2\/3 cities, representing a distinct cohort of first-time online shoppers.<\/p>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Meesho has become India\u2019s first horizontal e-commerce firm to generate positive cash flow, marking a significant shift in a market where profitability has long remained elusive even as new competitive threats emerge. The SoftBank and Prosus-backed startup, which serves customers in smaller Indian cities and towns, reported positive operating cash flow of \u20b9232 crores ($27.6…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-642851","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/642851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=642851"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/642851\/revisions"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=642851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=642851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=642851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}