e-commerce platform Meesho reported a sharp widening of losses in the December quarter, with net loss ballooning nearly 13 times to ₹491 crore in Q3 FY26 from ₹37 crore, even as the company posted strong topline growth amid rising scale and user activity. Meesho’s consolidated revenue rose 32% year-on-year to ₹3,518 crore during the quarter, compared with ₹2,674 crore in the corresponding period last year, highlighting continued traction across India’s value-led e-commerce market.
Expenses Surge Weighs on Profitability
The widening losses were largely driven by a sharp increase in costs. Meesho’s total expenses surged 44% year-on-year to ₹4,071 crore in the quarter ended December, up from ₹2,823 crore a year earlier and ₹3,540 crore in the previous quarter. The spike in spending reflects investments in logistics, platform growth, technology and customer acquisition as the company scales operations.
Despite the pressure on profitability, Meesho ended the quarter with a strong cash balance of ₹7,277 crore, including ₹4,088 crore raised through its initial public offering, providing it with ample runway to fund growth and operational expansion.
User Growth and Platform Scale Strengthen
Founder and CEO Vidit Aatrey said the Q3 performance reflects the strength of Meesho’s platform flywheel, driven by rising user engagement and repeat purchases, particularly in underserved and first-time e-commerce markets. During Q3 FY26, placed orders rose 36% year-on-year to 690 million, while annual transacting users increased 34% to 251 million, making Meesho the largest e-commerce platform in India by both annual transacting users and placed orders.
On a last twelve months basis, users transacted an average of 9.78 times per year, up 9% year-on-year, indicating growing purchase frequency and the formation of repeat buying behaviour across smaller towns and regional markets.
NMV Growth and Cash Flow Indicators
Meesho reported Net Merchandise Value (NMV) of ₹10,995 crore in Q3 FY26, marking a 26% year-on-year growth, supported by higher order volumes and improving platform efficiency. On a trailing twelve-month basis, the company generated free cash flow of ₹56 crore, aided by its asset-light business model, negative working capital cycle and limited capital expenditure requirements.
Technology-Led Growth Strategy
As part of its growth strategy, Meesho continued to invest in technology-driven innovations aimed at improving conversion and accessibility for new users. The company enhanced its home page experience using deep-learning-based recommendation models that personalise feeds with limited onboarding signals. It also improved voice search capabilities, driving higher conversion rates in regional language markets.
Meesho’s platform remains focused on affordability, leveraging a low-cost operating structure for sellers, optimised logistics, automated seller operations and scale-driven operating leverage, while maintaining accessibility through products designed for low-end smartphones and low-bandwidth environments.
Outlook
While rising costs continue to weigh on near-term profitability, Meesho’s strong revenue growth, expanding user base and healthy cash reserves underscore its ambition to consolidate leadership in India’s mass-market e-commerce segment. The company’s ability to balance growth with cost discipline will remain a key factor to watch in the coming quarters as competition intensifies across the sector.