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Meesho’s quarterly loss widens as marketing spend rises

Indian e-commerce firm Meesho reported a sharp widening of losses in the December quarter, marking its first earnings announcement since its high-profile stock market debut in December 2025. The Bengaluru-based company posted a consolidated net loss of ₹4.91 billion for the quarter ended December 31, compared with a loss of ₹374.3 million in the same period last year, as aggressive spending weighed on profitability.

Despite the steep rise in losses, Meesho continued to show strong growth across key operating metrics, underlining its push to scale up in India’s intensely competitive e-commerce market dominated by Amazon and Walmart-owned Flipkart.

Rising expenses pressure profitability

Meesho said its total expenses climbed 44% year-on-year to ₹40.71 billion, driven largely by higher spending on advertising, sales promotions, and logistics. Investment in advertising and sales promotion, as a share of net merchandise value (NMV), nearly doubled to 2.4%, up from 1.3% a year earlier, reflecting the company’s focus on acquiring new users and strengthening brand visibility.

The company also cited the accelerated scaling of Valmo, its recently acquired logistics platform, as a key contributor to the spike in costs. Meesho said these investments were strategic and added that expenses related to logistics expansion were expected to normalise in the coming quarters.

Meesho has differentiated itself in the market by offering low-priced products while not charging sellers a commission, a model that has helped it attract value-conscious consumers across India.

Revenue and user growth remain strong

Revenue for the quarter rose nearly 32% to ₹35.18 billion, supported by festive-season demand and India’s expanding base of online shoppers seeking affordable and convenient purchasing options. The company said demand was further boosted by a favorable consumption environment, including tax cuts.

Meesho’s annual transacting user base increased 34% to 251 million, while NMV—a key metric that tracks the total checkout value of successfully delivered orders—grew 26% to ₹109.95 billion during the quarter.

Looking ahead, Meesho said it expects its adjusted core-earnings margin to improve over the next two quarters, supported by logistics cost recovery, operating leverage from user growth, and ongoing technology investments.

Meesho’s shares closed nearly 3% higher ahead of the results announcement and are up about 7% since their listing on December 10, 2025, indicating continued investor confidence despite near-term pressure on earnings.