Meesho Narrows Losses in Q1 Amid Revenue Growth
E-commerce platform Meesho reduced its net loss significantly in Q1 FY27, driven by a 48% year-on-year revenue increase. The company also approved further investment in its grocery segment.
Indian e-commerce major Meesho has narrowed its losses in the first quarter of fiscal year 2027, reporting a consolidated net loss of ₹132.8 crore, a 54% decrease year-on-year. This improvement was supported by a substantial 48% rise in operating revenue, reaching ₹3,707 crore.
Despite a nearly 43% increase in total expenses to ₹3,959 crore, the company's core marketplace business demonstrated improved unit economics. Growth in net merchandise value (NMV), order volume, and transacting users, coupled with optimized logistics and better monetization, contributed to stronger performance.
Meesho's expansion into new initiatives, including branded commerce and content-led commerce, also showed strong NMV growth, although these ventures widened adjusted EBITDA losses to ₹39 crore. The company is leveraging artificial intelligence to enhance engineering productivity and simplify seller onboarding.
Additionally, the company's board has cleared a supplementary investment of ₹75 crore into its grocery arm, signaling a continued strategic focus on this competitive sector. The board also proposed amendments to its articles of association regarding board nomination thresholds. Meesho is now preparing for the upcoming festive sale season, aiming to maintain its path towards profitability through margin expansion and AI-driven efficiencies.