Meesho reported a net loss of ₹3,941 crore in fiscal year 2025 (ending March 31, 2025), which is a dramatic widening from its previous year’s loss of about ₹327 crore. At the same time, revenue grew — Meesho’s operating revenue for FY25 was about ₹9,389 crore, up from ₹7,615 crore in FY24.
So while top-line growth is solid, the bottom line has worsened considerably.
Breaking Down the Numbers
Revenue Growth
- FY24 revenue: ~₹7,615 crore.
- FY25 revenue: ~₹9,389 crore.
This represents growth of ~23-25% year-on-year.
Loss Widening
- FY24 loss: ~₹327 crore.
- FY25 loss: ~₹3,941 crore.
The jump in losses is largely attributed to exceptional one-time items (such as reverse-flip tax, reorganisation costs), increased advertising and other operating costs.
Key Why’s
- The company flagged “one-time exceptional items, including reverse flip tax and other taxes attached with the re-organisation of the company to a public entity, additional costs due to accelerated ESOP held by its promoters, as well as an increase in advertising expenses.”
- Heavy investment in manpower, marketing, technology and scaling the platform.
Why This Matters
- IPO Readiness & Valuation Pressure
Meesho is preparing for an IPO and this large loss figure will be a significant talking point for investors. While growth is strong, profitability is moving in the wrong direction — which could affect investor sentiment and valuation. - Unit Economics Under Spotlight
Growth in revenue is encouraging, but unless the company demonstrates improving unit economics (cost per order, margin per sale) the losses may raise questions about sustainability. - Market Positioning Risks
In a competitive e-commerce landscape (with players like Flipkart and Amazon India), heavy spending is common — but the ability to convert scale into profit or positive cash flows is what distinguishes winners. - Use of Funds & Strategy
The widening losses suggest that Meesho is aggressively investing — that may be fine if it leads to market dominance and later profitability, but it also increases the risk if growth slows or costs creep up further.
The Bigger Picture — What’s Ahead?
- Meesho must show signs of cost discipline and path to profitability in the next few quarters to justify its IPO and investor expectations.
- The company’s revenue growth is good, but the key will be margin expansion and cash-flow positivity.
- Investors will focus intensely on what portion of the loss is one-time vs recurring, and how much is due to ongoing spending that might persist.
- The broader startup/tech market is also watching: many IPO-bound companies are still loss-making, and Meesho is one of them. The Financial Express
Conclusion
While Meesho’s growth story remains intact, the staggering ₹3,941 crore loss in FY25 raises major red flags. For Meesho to thrive in its IPO and beyond, it will need to translate scale into profitability. Investors, analysts and market watchers will be closely monitoring the next couple of quarters for signs of improvement.
