Indian E-Commerce Firm Meesho’s Quarterly Loss Spikes as It Ramps Up Marketing

Indian e-commerce firm Meesho’s quarterly loss widened sharply in its first earnings report since its blockbuster market debut in December last year, as costs rose.

The firm’s consolidated net loss widened 13-fold to 4.91 billion rupees ($53.44 million) for the quarter ended Dec. 31, from a loss of 374.3 million rupees a year ⁠ago.

Meesho has carved out a niche for itself by offering low-priced products without charging ⁠sellers a commission, in a space that has majors such as Amazon.com and Walmart-owned Flipkart vying for customers in the world’s most populous country.

The company, backed by Softbank and Peak XV Partners, has been on an expansion spree to onboard more users. Meesho’s investment in advertising and sales promotion, as ‍a share of its net merchandise value, nearly doubled to ​2.4 percent in the reporting quarter from 1.3 percent last year.

NMV is a key metric for ‍e-commerce platforms that measures the total checkout value of successfully delivered orders.

Overall expenses jumped 44 percent to 40.71 ⁠billion rupees, with advertising

Meesho also cited ‍the accelerated scaling up of its newly acquired logistics platform Valmo as part of the reason for the jump in expenses, and said it was “expected to normalise in the coming quarters.”

Revenue rose nearly ‍32 percent to 35.18 billion rupees as India’s growing online consumer ‍base looks ‌for cheaper and more convenient ways to shop, fueled by tax cuts and festive-season demand.

Its annual ‌transacting users jumped 34 percent to 251 million in ​the ‍quarter and NMV climbed 26 percent to 109.95 billion rupees.

We expect adjusted core-earnings margin to improve in the next two quarters, driven by logistics cost recovery, operating leverage on user growth, and technology investments made during the year, the company said.

Meesho’s stock ‌closed nearly 3 percent higher ahead of the results and has risen 7 percent since its listing on Dec. 10, ‌2025.

By Komal Salecha; Editors: Mrigank Dhaniwala and Janane Venkatraman

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