According to a top company executive, E-commerce unicorn Meesho has decreased its monthly cash burn to $4 million (Rs 30 crore) in December while it still has around half a billion dollars in its bank account.
2022 was the year where investors across the tech start-up world asked portfolio companies to show a clear path to profitability, the Softbank-backed company said that it has brought its monthly cash burn down by 90 percent from $40 million (Rs 300 crore) in January this year.
This comes at a time when financial filings by Meesho with the Ministry of Corporate Affairs, reflected that its revenue grew four times to Rs 3,232 crore in financial year 2022, whereas net loss increased 6.5 times to Rs 3,248 crore during the period.
The company’s Chief Financial Officer Dhiresh Bansal said that the massive loss in FY22 was due to large investments made during the beginning of the year towards new customer acquisition and a pivot from a reseller-led business model to a consumer marketplace.
As a result, the e-commerce startup said that its mobile app racked up 273 million installs in 2022. Its annual transacting users surged to 140 million, up approximately 80 percent, while the company saw a record 910 million orders in CY22, up to 135 percent.
