Meesho sees 35% order growth in 2024; number of users up 25% to 175 million

SoftBank-backed e-commerce company Meesho on Friday said it has recorded a 35% annual growth in orders while the number of users on the platform increased 25% to 175 million in 2024.

The e-commerce firm said that the surge in consumption and growing adoption of e-commerce in Tier 2 and smaller towns fuelled a cumulative 70% order growth annually across categories like Beauty and Personal Care (BPC), and Home and Kitchen.

"With about 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 prioritising affordability in discretionary categories such as fashion, beauty, personal care, and home essentials," Meesho said in a statement.

The company said that despite challenging market conditions, it sustained its growth trajectory and reached approximately 175 million annual transacting users in 2024, up 25% from 140 million users a year ago.

"Notably, around half of this user base comes from tier 4 and smaller 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 around 210 million downloads," the statement said.

Meesho said that Gen Z users now account for one-third of its user base and it is rapidly emerging as the fastest-growing demographic in India's e-commerce space.

"Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in e-commerce user growth, highlighting the vast untapped potential of tier 2 and smaller markets. This trend signals a broader shift in Indian consumer behaviour, with increasing demand for value-driven, high-quality products reshaping the e-commerce landscape and driving a resurgence of consumption in smaller towns," the statement said.

The e-commerce firm had reported a 33% increase in the revenue from operations to ₹76,150 million, largely driven by the increase in annual transacting users and repeat purchases from existing customers.

In FY24, the company became the first horizontal e-commerce platform to generate an operating cash flow of ₹232 crore for the full year, the statement said.

Meesho said that categories such as Beauty & Personal Care (BPC), and Home & Kitchen (H&K) saw a cumulative about 70% year-on-year growth in orders, reflecting strong demand from these emerging markets.

Meesho Mall, which houses large brands, experienced a 117% increase. "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," the statement said.

In 2024, Meesho claims to have 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," the statement said.