For a company that raised US$300 million in its latest funding round, from Japanese conglomerate SoftBank no less, Meesho’s numbers aren’t what one would expect them to be. According to data from Indian research from Tracxn, the social commerce company reported operating revenue of Rs 80 crore (US$11 million) and a loss of Rs 100.42 crore (US$13.5 million) for the year ended March 2019. While its topline increased nearly 4X to Rs 307 crore (US$41 million), its losses also shot up more than 3X to Rs 315.4 crore (US$42 million) for the year ended March 2020.
Piecing together SoftBank’s US$300M social commerce bet on Meesho
Unicorn status in six years and a 3X jump in valuation in two—there’s something about Meesho and social commerce that has gotten SoftBank to hang its hat on. Meesho’s numbers, however, tell a different tale
Meesho’s reseller strategy and asset-light business model have put the company—and social commerce—on the hotlist
SoftBank came calling on the back of a potential US$60 to US$70 billion Indian market for the sector
But Meesho’s numbers don’t match SoftBank’s enthusiasm; losses have shot up 3X and unit economics are far from getting into the black
SoftBank is hoping to emulate its bets in Flipkart and Alibaba, but Meesho has a long way to go before it can play in that league