Meesho cut net loss to ₹132.8 crore in Q1FY27 as revenue grew 48.3% to ₹3,713 crore. The company will boost customer acquisition spending ahead of the festive season, with Q3 expected to benefit from a flagship sale shift.
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Meesho narrowed its net loss to ₹132.8 crore in the fiscal first quarter, roughly half the ₹289.3 crore it lost a year earlier, as revenue jumped 48.3% to ₹3,713 crore. The Bengaluru-based e-commerce marketplace attributed the improvement to lower order cancellations, reduced Return-to-Origin (RTO) rates and stronger platform monetisation.
Net Merchandise Value (NMV) rose 34% year-on-year to ₹11,614 crore. Marketplace revenue from operations climbed 48% to ₹3,707 crore. Annual Transacting Users (ATUs) reached 274 million in the April-June period, up 29% from a year ago. Total placed orders increased 29% to 725 million, and average purchase frequency hit 10.3 transactions per user on a last-twelve-months basis.
Contribution margin stood at 4.6% of NMV, expanding 54 basis points from the prior quarter. The company said logistics and routing efficiencies, a higher share of prepaid orders, improved platform monetisation and operating discipline drove the margin gain. Marketplace Adjusted EBITDA margin was negative 1.2% of NMV, improving sequentially toward break-even. Last twelve months free cash flow improved to negative ₹537 crore, from negative ₹633 crore in the preceding quarter.
Meesho plans to step up customer acquisition spending in the current quarter as it prepares for the festive season. The company warned that higher spending, combined with the shift of its flagship sale to the third quarter from the second, would weigh on second-quarter performance. Third-quarter results are expected to benefit from the timing change.
Founder and Chief Executive Officer Vidit Aatrey said the most rewarding part of building the platform is seeing the value created for millions of users and sellers as engagement and purchase frequencies deepen across cohorts. Founder and Chief Technology Officer Sanjeev Barnwal said technology remains central to the operating model, allowing the company to build scalable systems and improve logistics efficiencies.
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