Bengaluru, December 13th, 2024: Meesho, India’s only true e-commerce marketplace, is concluding 2024 with impressive growth, further cementing its mission to democratize internet commerce for all. With a ~35% year-on-year increase in orders, the platform is a clear reflection of strong consumer sentiment and the rapidly expanding adoption of e-commerce across the country. This growth is driven by India’s value-seeking shoppers, who are prioritizing affordability in discretionary categories such as fashion, beauty, personal care, and home essentials. As consumer behavior continues to evolve across diverse regions and demographics, the e-commerce landscape is expanding, fueled by shifting preferences and greater access to quality products at affordable prices.
Despite challenging market conditions, Meesho sustained its growth trajectory, reaching approximately 175 million annual transacting users in 2024. Notably, ~50% of this user base comes from tier 4+ towns like Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka). The platform also retained its position as the most downloaded shopping application for the fourth consecutive year, surpassing ~210 million downloads.
This growth is also reflected in Meesho’s financial performance. In FY 2023-24, the company became the first horizontal e-commerce platform to generate operating cash flow of INR 232 crores for the full year. Revenue from operations in the same period rose by 33%, reaching INR 7,615 crores largely driven by the increase in annual transacting users and a higher order frequency from loyal repeat customers. The company’s ability to attract new users while maintaining high engagement from its existing shopper base has fueled its continued growth in India’s competitive e-commerce market.
Here’s a look at the key highlights that shaped Meesho’s growth in 2024:
Expanding Consumption Boosting Digital Demand in Small Towns
Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in e-commerce user growth, highlighting the vast untapped potential of tier 2+ markets. This trend signals a broader shift in Indian consumer behavior, with increasing demand for value-driven, high-quality products reshaping the e-commerce landscape and driving a resurgence of consumption in smaller towns.
Categories such as Beauty & Personal Care (BPC), and Home & Kitchen (H&K) saw a cumulative ~70% year-on-year growth in orders, reflecting strong demand from these emerging markets. Similar trends were observed on Meesho Mall, which experienced a 117% increase in orders, solidifying its position as the go-to platform for branded products at unmatched value. Leading brands such as Lotus (6X growth), Joy (5.5X growth), Renee (3.5X boost), and Dollar (1.8X increase) benefited from this growing digital shift.
While tier 2+ towns were a key driver of this expansion, repeat shoppers from metro cities like Delhi, Bengaluru, and Hyderabad further strengthened Meesho’s broad appeal, reinforcing its deep presence across both urban and rural India.
Gen Z Become Fastest-Growing E-commerce Demographic, Influencing Key Trends Across Categories
Gen Z, now accounting for one-third of Meesho’s user base, is rapidly emerging as the fastest-growing demographic in India’s e-commerce space.
Meesho has seen a notable surge in demand for products aligned with Gen Z’s values, particularly those that are eco-conscious, practical, and focused on self-care. Items such as glass sippers, reusable straws, makeup wipes, sneakers, and resistance bands have seen a significant increase in orders, reflecting the generation’s strong preference for sustainability, wellness and self care.
For nearly 75% of Gen Z shoppers on Meesho, purchasing trendy or viral products is a way of expressing their individuality, with self-expression taking precedence over peer or social media influence. Over half of these shoppers use the wishlist feature to save items they aspire to own, while many also monitor discounts closely, showcasing a savvy mix of aspiration and budget-consciousness. Creators and influencers have further fueled this trend, helping Gen Z discover new items and driving engagement with the platform.
Innovating for India: Transforming E-commerce with Gen AI
Meesho is leading the Gen AI revolution in e-commerce with the launch of India’s first large-scale multilingual AI-powered voice bot. This groundbreaking tool sets a new standard for customer support by offering personalized, human-like assistance in multiple languages, aligning with Meesho’s commitment to user-centric solutions. Designed to cater to the diverse and multilingual landscape of India, the voice bot ensures seamless communication, achieving 10% higher Customer Satisfaction (CSAT) scores compared to human agents during its pilot phase and demonstrating an impressive ~80% resolution rate.
Building on this AI-driven approach, Meesho personalizes every aspect of the shopping journey, from notifications to search results. By analyzing user signals and leveraging deep learning, the platform creates tailored, discovery-led experiences, particularly for shoppers in Tier-2 and Tier-3 cities—many of whom are first-time online buyers. AI-powered product recommendations, vernacular voice search, and AI-driven translations for product descriptions help break down language barriers and simplify navigation. These efforts have led to a measurable impact on platform orders, while also setting new standards for inclusivity and engagement in e-commerce.
Furthermore, Meesho is revolutionizing last-mile delivery by using AI to accurately translate customer addresses, overcoming logistical challenges in both urban and rural areas. The platform’s vernacular input system and ‘smart capture’ feature simplify address entry, ensuring timely and efficient deliveries, and ultimately providing a frictionless shopping experience for customers.
Meesho Strengthens User Trust with Project Vishwas
In 2024, Meesho continued to strengthen platform safety and user trust through its comprehensive Project Vishwas. In the past year, the initiative has successfully prevented over 22 million fraudulent transactions, blocked 7.7 million scam attempts, and significantly reduced lottery fraud by 75%. Collaborating closely with law enforcement agencies, Meesho achieved a 98% success rate in addressing account takeover fraud and filed multiple FIRs, leading to arrests and decisive action against bad actors. The company also took down 18,000 fake social media accounts and 130 fraudulent websites/apps, reinforcing its commitment to safeguarding users from deceptive practices.
As highlighted in its Trust Assurance Report 2024, Meesho’s efforts are powered by advanced analytical models, AI-driven fraud detection tools, and a dedicated Quick Response Team providing rapid assistance to customers within five minutes. By continuously innovating and working with industry experts and authorities, Meesho is setting new standards for security in the e-commerce space, ensuring a seamless, trustworthy, and secure shopping experience for millions of users across India.