In a significant milestone for India's e-commerce industry, Meesho, a SoftBank and Prosus-backed startup, has become the country's first horizontal e-commerce firm to generate positive cash flow. The company reported an operating cash flow of ₹232 crores ($27.6 million) for the financial year ending March 2024, while growing its operating revenues by 33% to ₹7,615 crores ($905.6 million). Its adjusted losses fell a staggering 97% from ₹1,569 crores to just ₹53 crores.

Meesho's achievement is all the more remarkable given the competitive landscape of India's e-commerce market, where profitability has long remained elusive. The company's focus on serving customers in smaller Indian cities and towns has paid off, with 45% of its customers now coming from tier 4 cities and beyond. Meesho's success in acquiring customers from India's underserved markets has also contributed to its growth, with 145 million unique annual transacting users, representing approximately 10% of India's population.

The company's launch of its own logistics service, Valmo, has also helped optimize shipping costs, with Valmo handling roughly 35% of all Meesho orders. This move is part of a broader trend in the industry, with established players like Amazon and Flipkart also handling a significant portion of their deliveries in-house.

Meesho's achievement is a significant one, not just for the company itself but for the Indian e-commerce industry as a whole. As the market continues to grow, with Bank of America analysts predicting 120 million new online shoppers to enter the market over the 2024-27 period, Meesho's success serves as a beacon of hope for profitability in the sector.