In a groundbreaking development, India’s Meesho emerges as a formidable player, outpacing giants Flipkart and Amazon. The Bengaluru-based startup, valued at nearly $5 billion, achieves a remarkable GMV run rate exceeding $5 billion, disrupting the traditional e-commerce hierarchy.
Meesho’s strategic focus on small towns proves to be a game-changer. With a 32% YoY growth in December 2023, it surpasses Flipkart’s 21% and Amazon’s 13% user growth. AllianceBernstein analysts highlight Meesho’s niche in Tier 2 and below cities, capturing over 50% of sales in these areas—an untapped market by the competition.
Positioning itself as a platform for small, unbranded sellers with zero commissions, Meesho gains rapid adoption. The report notes that Amazon India’s growth lags, with Tier 2+ users driving 80% of e-commerce, further solidifying Meesho’s market presence.
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Over the last 12 months, Meesho experiences a 43% YoY growth in order volume, coupled with a 54% revenue growth through healthy take rates. The startup’s monthly active users reach a staggering 120 million, growing at 29% YoY, with an impressive 85% customer retention rate.
In contrast, the report estimates that Flipkart currently holds a 48% GMV share in India’s online retail industry, reaching around $29 billion in FY2023. Meesho’s ascendancy underscores a shift in consumer preferences, emphasizing the impact of catering to small-town consumers and delivering value-conscious solutions.
