Meesho posts 35% annual order growth on tier 2+ boom

Bengaluru: Softbank-backed e-commerce company Meesho posted a 35% year-on-year order growth during the January-December period , it said in a press note on Friday. The company attributed this growth to expanding consumption in smaller cities and increasing user base among Gen Z customers.

Among states and union territories, Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in the platform’s user growth, highlighting the demand surge coming from its traditional non-Tier 1 markets.

Out of its newly added user base in 2024, around 50% came from smaller towns like Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka).

This trend signals a broader shift in Indian consumer behavior, especially at a time when urban demand continues to shrink due to high inflation and low real wage growth. This has led to people cutting down spending on non-essential goods.

In FY2023-24, Meesho generated an operating cash flow of Rs 232 crore. Revenue from operations in the same period rose by 33%, reaching Rs 7,615 crore.

Gen Z, now accounts for one-third of the user base and is emerging as the fastest-growing demographic, it added. The user base’s increase can also be attributed to the rise of direct to consumer (D2C) brands in the play which cater to a more specific niche.