Meesho REports RS 100.42 Crore Loss in 2019
It’s yet another unsuccessful year for Meesho, a Bangalore-based startup that offers an online reseller facility for small businesses and individual sellers. The ambition of becoming the Indian version of eBay (or AliExpress) was high. But so far by March 31, the company reports yet another loss. In the financial year 2018, the company declares a loss of Rs 100.42 crore.
The previous financial year wasn’t successful for Meesho either; the loss was smaller, though, and only made up for Rs 5 crore. On the other hand, this year Meesho demonstrates a solid revenue increase. While the revenue was just Rs 5 crore the previous year, this time it’s Rs 84 crore. Despite that, the revenue-to-loss ratio is even worse for Meesho this year.
As the report highlights, the expenses of the startup grew this year because of logistics, marketing, and regular expenses like staff salaries or technical service. The company relies heavily on discounts, bonus programs, referral rewards, reimbursements, and other methods to attract clients. This contributes to the overall expenses too.
The idea of Meesho is combining a traditional marketspace with social media-based e-commerce. The creators of Meesho are Sanjeev Barnwal and Vidit Aatrey, both graduates of IIT. They have shaped out the idea and made it attractive enough for companies like Facebook, SAIF, RPS, Shunwei Capital, and Venture Highway to participate. Backed by these, Meesho can become profitable this year and finish this series of losses, if the investments are managed right.