Meesho ₹701 crore loss came to light as the e-commerce platform reported a consolidated net loss of ₹701 crore in the first half (H1) of fiscal year 2025–26. Despite this, the company’s revenue from operations rose sharply — up 29% year-on-year — reaching around ₹5,578 crore (from ₹4,311 crore in H1 FY25).
Including other income, Meesho’s total income for the period stood at approximately ₹5,858 crore.
Why the Loss Happened: Costs, Investments & Market Conditions
- Costs surged significantly: Meesho’s total expenses climbed to about ₹6,291 crore in H1 FY26, up from ₹4,569 crore a year ago — a 38% increase.
- Large spend on logistics & advertising: A major portion of the cost increase came from logistics (transport, delivery, fulfilment etc.) and advertising, affecting the bottom line.
- Aggressive growth strategy ahead of IPO: The company appears to be investing heavily in scaling operations, promoting growth, and preparing for a public listing — sometimes at the cost of near-term profitability.
Context: From Past Performance to Today’s Reality
The current loss marks a sharp improvement compared to the previous year — in H1 FY25, Meesho had reported a massive loss of around ₹2,513 crore.
After posting losses of ₹53 crore in FY24, the company had signalled a return toward stability. However, FY25 saw a large net loss (₹3,941 crore), majorly attributed to one-time cleanup costs, IPO-related expenses and business restructuring.
Thus, the ₹701 crore loss in H1 FY26, while sizeable, actually indicates a narrowing of losses and a move toward stabilisation — albeit with continued heavy spending.
What This Means for Meesho’s IPO Prospects and Future Growth
- The narrowed losses and growing revenue could help bolster confidence among potential investors ahead of the planned initial public offering (IPO).
- However, sustained high expenses — particularly logistics and advertising — suggest that Meesho still needs to improve operational efficiency and cost control if it wants to turn profitable consistently.
- The company’s aggressive investment strategy may pay off if it translates into higher market share, improved monetization, and eventually profitability — but it’s a risky balance between growth and sustainability.
