Meesho claims Indian e-commerce first with positive cash flow
Meesho has become India's first horizontal e-commerce firm to generate positive cash flow, marking a significant shift in a market where profitability has Meesho has become India's first horizontal e-commerce firm to generate positive cash flow.
Meesho has become India’s first horizontal e-commerce firm to generate positive cash flow, marking a significant shift in a market where profitability has long remained elusive even as new competitive threats emerge.
The SoftBank and Prosus-backed startup, which serves customers in smaller Indian cities and towns, reported positive operating cash flow of ₹232 crores ($27.6 million) for the financial year ending March 2024, while growing operating revenues by 33% to ₹7,615 crores ($905.6 million). Its adjusted losses fell 97% from ₹1,569 crores to just ₹53 crores.
Meesho’s growth remains faster than the e-commerce’s surge in India. India’s e-commerce industry growth is expected to moderate to 17% in 2024 before accelerating to 20% in 2025, Bank of America analysts said this week. This relatively slower growth is attributed to consumption slowdown impact and slower apparel industry growth.
Flipkart’s marketplace arm grew its revenue by 21% to $2.12 billion in the financial year ending March, it disclosed in filings this week. Its losses fell 41% to $280.4 million.
The Indian commerce market is simultaneously being reshaped by quick commerce firms in urban cities. Blinkit, Zomato’s quick commerce arm, has expanded the network of so-called dark stores — the warehouses where it stores the inventory — and increased SKUs from 4-5,000 to over 10,000. The platform has also introduced new features including payment installment options for purchases above ₹3,000 ($35.7), 10-minute returns for clothing and footwear, and split shipments to expand its reach.
Article
Let's break down SoftBank's business portfolio and investments in more detail:
Telecommunications:
SoftBank's telecommunications ARM is one of the largest in Japan, with a market share of around 20%. The company operates a mobile network that covers over 90% of Japan's population, and it also offers fixed-line and broadband services. SoftBank's telecommunications business is focused on providing high-speed Internet and mobile services to consumers and businesses.
In 2016, SoftBank acquired Sprint corporation, a US-based wireless carrier, for $21.6 billion. The acquisition gave SoftBank control of Sprint's mobile network and expanded its presence in the US market. However, the deal was later reversed due to regulatory hurdles, and Sprint was sold to T-Mobile US for $26.5 billion in 2014.
Technology:
SoftBank has invested heavily in various tech startups, including:
Venture capital:
SoftBank's venture capital arm, SoftBank Vision fund, is one of the largest and most active venture capital firms in the world. The fund was launched in 2016 with a target size of $100 billion and has since invested in over 200 companies, including:
Finance:
SoftBank has a significant presence in the financial services sector, including:
Real Estate:
SoftBank has invested in various real estate projects, including:
Investment Strategy:
SoftBank's investment strategy is focused on investing in emerging technologies, including:
Overall, SoftBank's business portfolio and investments reflect its focus on emerging technologies and its commitment to investing in innovative startups.