Its growth is attributed to factors such as increased demand from smaller towns, rise in Gen Z shoppers, and innovations in generative artificial intelligence (AI)
Bengaluru: Indian e-commerce marketplace Meesho has recorded around 35% year-over-year (YoY) increase in orders in 2024, fueled by increased demand in smaller towns, rise in Gen Z shoppers, and generative artificial intelligence (AI) innovations, the company said in a press release on Friday.
Meesho reached approximately 175 million annual transacting users in 2024 and nearly 50% of this user base comes from tier-4 and beyond towns like Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka).Â
The platform also retained its position as the most downloaded shopping application for the fourth consecutive year, surpassing over 210 million downloads, the release added.
In FY24, the company claims that it became the first horizontal e-commerce platform in India to generate an operating cash flow of Rs 232 crores for the full year. Revenue from operations in the same period rose by 33%, reaching Rs 7,615 crores driven by the increase in annual transacting users and a higher order frequency from loyal repeat customers.Â
Categories like beauty and personal care, as well as home and kitchen, experienced nearly 70% year-on-year growth in orders. Meesho Mall also saw a 117% increase in orders. Brands such as Lotus (6-fold growth), Joy (5.5-fold growth), Renee (3.5-fold growth), and Dollar (1.8-fold growth) saw gains from the ongoing digital shift.
Gen Z, now accounting for one-third of Meesho’s user base, mostly purchased items such as glass sippers, reusable straws, makeup wipes, sneakers, and resistance bands. Nearly 75% of Gen Z shoppers on the platform bought viral products and over half of those used the wishlist feature to save items they aspire to own, while many also monitored discounts closely.
This year, Meesho introduced a large-scale multilingual AI-powered voice bot for customer support, providing personalised, human-like assistance in multiple languages. During its pilot phase, the bot achieved a 10% higher customer satisfaction (CSAT) score compared to human agents and demonstrated a resolution rate of around 80%.
Moreover, Meesho strengthened its platform safety and user trust through Project Vishwas. In the past year, the initiative has prevented over 22 million fraudulent transactions, blocked 7.7 million scam attempts, and reduced lottery fraud by 75%.Â
Collaborating 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.
