Big if true, given Meesho’s scale
I know this might be a one off, but even if they are close to profitable/break even quarters, this can become a strong business
stupidusername
Stealth
a year ago
I dont trust a single words come out of the CXO’s mouth in case of startups. All bullshiting and hyping
Seems fake. All account gimmickry. Trust me. If they are EBITA positive, get yourself listed.
Itachi777
Stealth
a year ago
I think Zomato has also done a similar thing. They deffered the taxes to look profitable this quarter. All startups are doing this to appease investors in the short run and raise some more funding to increase lifespan before they finally shut down
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Yeah this is amazing news for all meesho folks now they should hire back people which they have laid off few months back if those folks want to join again
stupidusername
Stealth
a year ago
They will portray that firing people made them profitable instead of their stupid decisions
Mehanti
Stealth
a year ago
Who Uses Meesho's ?
It is super-popular among Tier3 city folks. When I went home 2 yrs back, my siblings were taking about it when I hadn’t even heard about it. It is because they sell cloths in dirt cheap cost.
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Credit where it’s due. Honestly, I work for their competitor and we’re always informed about their developments. They are doing some crazy stuff, really admirable
TurningBrain
Stealth
a year ago
Lol. CFO doesn't want to comment on numbers but wants us to beleive they are Ebitda positive. Banao investors ko C***** humko kya.
RaulG
Stealth
a year ago
Genuinely curious. Has anyone used Meesho here? Don't see anyone using it in my 1st circle. A lot of them haven't heard abt it as well. Have read they're big in tier 2&3 cities but those numbers seem off.
donna
Stealth
a year ago
They’re totally big in Tier 2/3 cities. I wondered the same until I visited my home-town and realised all my cousins and uncle/auntie’s first preference is Meesho and not Amazon/Flipkart.
My mom used it a lot initially, but stopped doing it because of bad experiences like different colors being sent, damaged products etc
This is true. No accounting gimmick. Profitability at PAT level after all costs etc. Truly industry first.
If this was true they should be doing a Pre-IPO round and list in next 2-3 year basis market sentiments.
I think they’re doing this because they probably did not get good a response to some closed door pre-IPO round talks with these numbers.
Wild speculations but possibly investors may think that aggressive cost cutting may not sustainable and additional capital will be required.
This has been a focused goal for the company for the past 12 months. There is no catch, it’s both EBIDTA and PAT positive.
It's a lean startup that is pure tech play. No massive operations which is why getting profitability despite scale was easier.
Aajkal har koi profitable ban raha to aid investor sentiments. Personally never used Meesho so not sure how it’s working
Umadbro
Stealth
a year ago
Agar Itni jaldi turnaround possible tha, that too with a huge growth apparently, then they would have done it sooner.
Alternatively, if you are just cooking the books, then any number is achievable. Excel me hi to change karna h. 🤷♂️
I would not be surprised if they cooked the books. Sequoia is on the board of meesho.
It's not really itna jaldi turn around. While a lot has been written about the cash burn, in terms of time period that phase was barely 6-8 months. Through its 8 years of existence Meesho has been quite frugal and has always made money on every order.
Umadbro
Stealth
a year ago
They also spent crazy on acquisitions. Unit economics could work, it does for others too, question was how cheaply can you get enough users to transact. It’s a low margin business, gains could only be shown on scale, that too with organic traffic. They are claiming pat, even accounting for esops.
If they are indeed profitable, that means the marketing spend is low, and yet people are buying from meesho. High retention/stickiness is something ecom could kill for. Either the number of orders really sunk that they serviced from last month’s inventory (cost of revenue tending to zero), or it’s a out performing company that somehow still can’t find anyone to invest in for a year, despite the great numbers, high repeat, and organic sales. All things any vc would kill for in this market.
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BitterPill
Stealth
a year ago
The fact that profitability of a "for profit company" is being celebrated like this, says a lot about the state of startup ecosystem in India! Profit in one quarter / year is worth nothing if it cannot be sustained (with some growth) in the future. Now we'll see a whole bunch of companies announcing profitability with much fanfare! :)
hellloworld
Stealth
a year ago
All bs… can’t be true
