Meesho marketplace revenue rises 34% to Rs 4,120 crore

Meesho’s marketplace revenue from operations grew 34% year on year to ₹4,119.9 crore in Q2 FY27, compared with 23% growth in net merchandise value (NMV) to ₹12,911 crore. The company expects advertising monetisation as a percentage of NMV to increase from FY28 and has ruled out introducing platform or convenience fees at checkout.

During its October 28 earnings call, Vidit Aatrey, Chairman, Managing Director and CEO, Meesho, said the company had consistently opposed additional checkout charges because they could leave mass-market consumers feeling misled about the final purchase price.

“If we have to charge higher, we would increase our take rate on logistics or ads,” Aatrey said.

He explained that consumers might not notice additional fees until reaching the payment stage, potentially eroding trust in Meesho’s value proposition. According to Aatrey, the company was willing to forgo some immediate revenue from checkout charges because greater customer trust could generate higher lifetime value over the long term.

Dhiresh Bansal, Chief Financial Officer, Meesho, said advertising monetisation as a percentage of NMV was expected to increase from FY28, providing an additional revenue source alongside improvements in logistics economics.

In its shareholders’ letter, Meesho attributed part of its revenue growth to increased seller spending, stating that “more sellers invested in ads that reliably convert into orders”. Improvements in matching seller demand with consumer intent and the use of transaction data to improve advertising relevance and conversions also supported monetisation.

Bansal clarified that advertising was not the primary driver of the improvement in contribution margins. He maintained that seller demand remained robust but declined to separately disclose whether advertising revenue as a percentage of NMV had increased during the quarter.

Meesho narrowed its net loss by 68% year on year to ₹132 crore in Q2 FY27, compared with ₹411 crore a year earlier.

Placed orders increased 17% year on year to 819 million, while annual transacting users grew 21% to 284 million. Annual purchase frequency increased 7% to 10.4 transactions per user, and first-time buyers rose 16% quarter on quarter.

The company reported 33% year-on-year growth in NMV on a festive-aligned basis over the 90 days preceding Dussehra. It said the comparison accounts for its Mega Blockbuster Sale shifting from the second quarter last year to the third quarter this year.

Meesho’s content commerce NMV surged 160% year on year, while active order-generating content pieces increased 144% to 2.2 million. More than 400,000 sellers were part of its content commerce ecosystem. Overall, annual transacting sellers increased 60% to 1.13 million.

Meesho Mall, the platform’s branded marketplace, recorded 81% year-on-year growth in NMV and hosted approximately 1,800 brands. Growth reached 89% in Tier 3 and smaller cities, while about half of its customers during the quarter were first-time buyers on the branded shopping section.

The marketplace contribution margin increased to 6% of NMV from 4.6% in the preceding quarter. Bansal attributed the improvement largely to logistics efficiencies, including better network density, improved routing, fewer return-to-origin orders and efficiencies within the Valmo logistics network.

Meesho generated ₹345 crore in quarterly free cash flow, compared with an outflow of ₹226 crore in the previous quarter. The company attributed the improvement partly to seasonal working capital benefits. Its cash balance stood at ₹7,048 crore as of September 30, 2026.

Meesho Chairman, Managing Director and Chief Executive Officer Vidit Aatrey said the company intended to reinvest efficiency gains into improving consumer and seller experiences, accelerating innovation and expanding the marketplace.