Ladakh, UP, and Bihar lead ecommerce growth: Meesho

Meesho recorded a ~35% year-on-year increase in orders reaching approximately 175 million annual transacting users in 2024. Notably, ~50% of this user base comes from tier 4+ towns like Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka).

In FY 2023-24, the company became the first horizontal e-commerce platform to generate operating cash flow of Rs 232 crores for the full year. Revenue from operations in the same period rose by 33%, reaching Rs 7,615 crores largely driven by the increase in annual transacting users and a higher order frequency from loyal repeat customers.

Key highlights:

Expanding Consumption Boosting Digital Demand in Small Towns

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

Categories such as Beauty & Personal Care (BPC), and Home & Kitchen (H&K) saw a cumulative ~70% year-on-year growth in orders, reflecting strong demand from these emerging markets. Similar trends were observed on Meesho Mall, which experienced a 117% increase in orders, solidifying its position as the go-to platform for branded products at unmatched value. 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.

While tier 2+ towns were a key driver of this expansion, repeat shoppers from metro cities like Delhi, Bengaluru, and Hyderabad further strengthened Meesho’s broad appeal, reinforcing its deep presence across both urban and rural India.

Gen Z Become Fastest-Growing E-commerce Demographic

Gen Z, now accounting for one-third of Meesho's user base, is rapidly emerging as the fastest-growing demographic in India's e-commerce space. Meesho has seen a notable surge in demand for products aligned with Gen Z’s values, particularly those that are eco-conscious, practical, and focused on self-care. Items such as glass sippers, reusable straws, makeup wipes, sneakers, and resistance bands have seen a significant increase in orders, reflecting the generation’s strong preference for sustainability, wellness and self care.

For nearly 75% of Gen Z shoppers on Meesho, purchasing trendy or viral products is a way of expressing their individuality, with self-expression taking precedence over peer or social media influence. Over half of these shoppers use the wishlist feature to save items they aspire to own, while many also monitor discounts closely, showcasing a savvy mix of aspiration and budget-consciousness. Creators and influencers have further fueled this trend, helping Gen Z discover new items and driving engagement with the platform.

Innovating for India

Meesho is leading the Gen AI revolution in e-commerce with the launch of India's first large-scale multilingual AI-powered voice bot. This groundbreaking tool sets a new standard for customer support by offering personalized, human-like assistance in multiple languages, aligning with Meesho's commitment to user-centric solutions. Designed to cater to the diverse and multilingual landscape of India, the voice bot ensures seamless communication, achieving 10% higher Customer Satisfaction (CSAT) scores compared to human agents during its pilot phase and demonstrating an impressive ~80% resolution rate.

Building on this AI-driven approach, Meesho personalizes every aspect of the shopping journey, from notifications to search results. By analyzing user signals and leveraging deep learning, the platform creates tailored, discovery-led experiences, particularly for shoppers in Tier-2 and Tier-3 cities—many of whom are first-time online buyers. AI-powered product recommendations, vernacular voice search, and AI-driven translations for product descriptions help break down language barriers and simplify navigation. These efforts have led to a measurable impact on platform orders, while also setting new standards for inclusivity and engagement in e-commerce.

Furthermore, Meesho uses AI to translate customer addresses, overcoming logistical challenges in both urban and rural areas. The platform’s vernacular input system and 'smart capture' feature simplify address entry, ensuring timely and efficient deliveries, and ultimately providing a frictionless shopping experience for customers.

Project Vishwas

In the past year, Meesho's Project Vishwas prevented over 22 million fraudulent transactions, blocked 7.7 million scam attempts, and 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.