Meesho Eyes New Revenue Beyond E-commerce Scale

Meesho is strategically pivoting from its established growth in value e-commerce towards generating new revenue streams from its large ecosystem. The company aims to monetize its significant base of 284 million annual transacting users and 1.13 million sellers, with advertising emerging as a primary focus for FY28.

Beyond advertising, Meesho is actively developing lending products for both consumers and sellers. Further diversification includes expanding branded offerings via Meesho Mall and exploring content commerce to enhance product discovery. These ventures are in their early stages but signal a broader monetization strategy.

Financial performance in Q2 FY27 demonstrates improved marketplace economics. Revenue from operations grew by 34% year-on-year to ₹4,119.9 Cr, with Net Merchandise Value (NMV) increasing by 23%. Contribution margin improved to 6% of NMV, indicating enhanced operational efficiency.

However, Meesho has cautioned that these gains are partly due to logistics efficiencies and may be balanced with benefits passed to consumers and sellers. The company is carefully navigating how to deepen monetization without compromising its core affordability proposition that attracts its user base.

AI integration is also a key component of Meesho's strategy, enhancing product discovery, fraud prevention, and internal operations. While AI boosts productivity, it also incurs increased infrastructure costs, though management expects these to normalize. Investments in new initiatives are capped at approximately ₹200 Cr, prioritizing product-market fit and unit economics before scaling.