Meesho Announces Largest Employee Stock Buyback Program Worth ₹200Cr

Meesho, a leading online shopping platform in India, has unveiled its biggest Employee Stock Ownership Plan (ESOP) buyback program to date, valued at Rs 200 crore. This initiative reinforces the company’s commitment to its workforce and its belief in its contributions to Meesho’s ongoing success story.

While Meesho boasts a current team of 1300 employees, this lucrative buyback program extends eligibility to at least 1700 individuals. This includes not only current staff but also former employees, offering them a chance to share in the company’s growth and financial achievements.

Voluntary Participation and Continued Belief in People

The program allows eligible current and former employees, ranging from junior executives to senior leadership, to voluntarily participate and potentially benefit from the buyback.

“Our employees are the lifeblood of Meesho’s success story,” declared Ashish Kumar Singh, Meesho’s Chief Human Resources Officer. “We’re delighted to announce our most significant ESOP buyback program yet. This initiative underscores our dedication to rewarding our teams and fostering a culture of wealth creation and growth within the organization, even amidst prevailing economic conditions.”

This marks the fourth wealth-generating opportunity Meesho has offered to its employees, with each program exceeding the previous one in size. The company previously conducted buybacks valued at over Rs 8.2 crore in February 2020, Rs 41.4 crore in November 2020, and Rs 45.5 crore in October 2021.

Profitability and Growth Fueling Expansion

Meesho holds the distinction of being the first horizontal Indian e-commerce company to achieve profitability. Since announcing its milestone achievement in July 2023, the company has maintained its status as a profitable and cash flow-positive entity.

Financial Performance Highlights

In December 2023, Meesho reported a significant improvement in its financial performance. The company’s losses narrowed by nearly half, dropping from Rs 3,251 crore in FY22 to Rs 1,675 crore in FY23. This positive trend is attributed to continued topline growth, enhanced operational efficiency, and a focused approach to cost optimization across various expense categories, including customer acquisition, server infrastructure, and others.

Revenue and User Growth

Meesho’s impressive financial performance is mirrored in its user base expansion. The company’s revenue from operations for FY 2022-23 witnessed a substantial 77% increase compared to the previous year, reaching Rs 5,735 crore. This growth can be attributed to several factors, including:

• Maintaining its dominant position as the most downloaded shopping app in India for two consecutive years (2022 and 2023)
• Increased transaction frequency among existing customers
• Expansion into a wider range of product categories
• Enhanced focus on monetization through value-added seller services

Continued Success and Positive Outlook

Meesho further revealed its audited financial performance for the first half of FY 2023-24. For this period, the company reported consolidated revenue from operations of Rs 3,521 crore, reflecting a substantial 37% year-over-year increase. Losses for the period were significantly reduced by 90% year-over-year, reaching Rs 141 crore. Furthermore, Meesho achieved profitability during the second quarter of FY24.

Data.ai reports indicate that Meesho garnered a staggering 145 million app downloads within India during 2023. The company also surpassed the impressive milestone of 500 million total downloads in the first half of FY 2023-24.

Meesho’s commitment to its employees, combined with its unwavering focus on profitability and growth, positions the company for continued success in the dynamic Indian e-commerce landscape.