In a bold move, Meesho, backed by Softbank, plans to onboard 100 million new merchants by 2027. The recent relaxation of GST rules for online sellers by the government has provided the perfect catalyst for this massive endeavor.
Meesho CEO Vidit Aatrey stated, “With 1.3 million sellers already on our platform, the policy change to allow more GST-exempt sellers is a big boost. Our goal is to add 1 crore more sellers by 2027.”
Meesho stands out as India’s first profitable e-commerce company at the group level. Aatrey is confident this momentum will persist, driven by the company’s innovative strategies.
E-commerce in India remains relatively young, with only 1.5-2 million online merchants. Improved internet access, network reliability, and online payment options are expected to drive significant growth.
A unique aspect of Meesho’s approach is its commitment to not charging commissions on sales. Instead, revenue comes from services like logistics and advertisements.
Meesho achieved operational profit in Q2 and group-level profitability in July. Though exact numbers aren’t disclosed, Aatrey mentioned it was less than Rs 10 crore.
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Aatrey believes India’s e-commerce potential is far from tapped, with just 5-6% of retail transactions happening online.
Despite economic challenges, Meesho’s middlemen-free model has resonated. Buyers get more value, driving the company’s success.
Recent figures reflect this success, with a 43% order volume increase and a 54% revenue surge over the past year.
Meesho’s resolute stance on not charging merchants commissions sets it apart. The company’s journey could reshape India’s e-commerce landscape, leveraging innovation, policy changes, and market potential.
