Financial Performance Highlights

Net Merchandise Value (NMV): Grew 34% YoY to ₹11,614 crore, driven by continued user growth and engagement.

Marketplace Revenue from Operations: Grew 48% YoY to ₹3,707 crore, driven by improved delivery conversion through lower cancellations, Return-to-Origin (RTO) rates and higher platform monetisation.

Contribution Margin: Expanded to 4.6% of NMV, up 54 basis points QoQ, driven by logistics efficiencies and improved platform monetisation. This represents the strongest Contribution Margin since listing.

Marketplace Adjusted EBITDA: Improved to (1.2%) of NMV, continuing the company's trajectory of strengthening marketplace economics. This represents the strongest Marketplace Adjusted EBITDA since listing.

Last Twelve Months (LTM) Free Cash Flow: Improved by approximately 15% to (₹537 crore) from (₹633 crore) in the previous quarter, reflecting continued progress in capital allocation and underlying business economics.

Cash Balance: As of June 30, 2026, Meesho had a cash balance of ₹6,521 crore, providing significant flexibility to invest in long-term growth opportunities while maintaining financial discipline.

Operational Metrics

Annual Transacting Users (ATUs): Increased 29% YoY to 274 million, while purchase frequency improved to 10.3 transactions per user annually, reflecting deeper engagement from existing cohorts.

Placed Orders: Grew 29% YoY to 725 million, reflecting continued expansion across the platform. This averages more than 90 orders every second.

Prepaid Orders: Reached approximately 37% of shipped orders, reflecting continued improvements in consumer trust and contributing to lower cancellations and Return-to-Origin (RTO) rates.

Annual Transacting Sellers: Grew 81% YoY to over 1.04 million, with 45% of sellers based in Tier 2+ towns and Tier 4 seller growth reaching 125% YoY.

AI and Technology Investments

AI-first Engineering: Meesho accelerated its AI-first engineering transformation, embedding AI across the software development lifecycle and delivering 2x+ productivity gains, enabling engineers to focus on architecture, product design and outcomes.

Consumer Experience Enhancements:

  • PRISM: Meesho's recommendation engine improved product discovery, personalisation and conversion
  • TrustMesh: Strengthened marketplace trust by reducing cancellations and Return-to-Origin (RTO) rates through enhanced risk detection
  • Vaani: Meesho's conversational shopping experience made product discovery more intuitive for voice-first and vernacular users

Seller Tools: AI-powered cataloguing, demand intelligence and multilingual voice agents helped improve seller onboarding, catalogue quality and participation.

Business Segment Performance

Meesho Mall: Now home to over 1,200 brands, grew approximately 93% YoY, expanding national brand participation across beauty and personal care, baby care, health and wellness, grocery and fashion.

Content Commerce: NMV grew 141% YoY, with active order-generating content increasing to 1.7 million, supported by AI-powered creator tools.

Strategic Initiatives

Kirana Club Acquisition: The acquisition of Kirana Club extends Meesho's asset-light marketplace model to India's kirana ecosystem, strengthening access to technology-led commerce for millions of retailers across Bharat.

Management Commentary

Dhiresh Bansal, Chief Financial Officer at Meesho: \"Our Q1 performance reflects the strength of Meesho's operating model. We delivered 34% year-on-year NMV growth, while Contribution Margin expanded to 4.6%, Marketplace Adjusted EBITDA improved to (1.2%) of NMV, and Last Twelve Months Free Cash Flow improved by approximately 15%. This quarter also marked our strongest Contribution Margin and Marketplace Adjusted EBITDA since listing, despite higher fuel costs and minimum wage increases in certain states, reflecting the structural improvements we've made across our platform.

AI is becoming foundational across every layer of our business, from product discovery and seller growth to logistics and engineering. This quarter alone, Meesho processed nearly 725 million orders, averaging more than 90 orders every second, demonstrating the scale at which these systems now operate. As AI continues to lower the cost of innovation, we believe it will help us build better products faster while maintaining disciplined capital allocation and creating long-term value.\"