Meesho, an Indian e-commerce company, sees sharp increase in quarterly loss due to marketing efforts.

Meesho, an Indian e-commerce company, saw a significant increase in its quarterly loss in its latest financial report following its highly successful market debut in December. The company’s consolidated net loss surged to 4.91 billion rupees ($53.44 million) for the quarter ending on December 31, compared to a loss of 374.3 million rupees in the same period the previous year.

Meesho has distinguished itself in the market by offering competitively priced products to customers without charging sellers any commission. This unique position has pitted it against major competitors like Amazon.com and Flipkart, both striving to capture the Indian market’s attention. To attract more users, Meesho has been focusing on expanding its reach, leading to a significant increase in its investment in advertising and sales promotion, which nearly doubled to 2.4% of its net merchandise value from 1.3% last year.

The net merchandise value (NMV) is a crucial metric for e-commerce platforms as it measures the total value of successfully delivered orders. Despite the increase in NMV and revenue rising by almost 32% to 35.18 billion rupees, Meesho’s expenses have also surged by 44% to 40.71 billion rupees. The rise in expenses can be attributed to the company’s efforts to scale up its logistics platform Valmo, a recent acquisition, with expectations that these expenses will stabilize in future quarters.

The company’s revenue growth can be attributed to the increasing number of online consumers in India seeking affordable and convenient shopping options, buoyed by tax reductions and seasonal demand spikes. Meesho has reported a 34% increase in annual transacting users, reaching 251 million, and a 26% growth in NMV to 109.95 billion rupees in the quarter.

Meesho remains optimistic about its future performance, anticipating an improvement in adjusted core-earnings margin over the next two quarters. This optimism is based on expectations of recovering logistics costs, leveraging operational efficiencies through user growth, and reaping the benefits of technology investments made throughout the year.

The company’s stock price experienced a modest 3% increase leading up to the results announcement, and has seen a 7% increase since its listing in December 2025. These results indicate Meesho’s significant potential for growth and competitive strength in the Indian e-commerce market.