Small town buyers, Gen Z push Meesho's order growth by 35% in 2024

Despite challenging market conditions, Meesho sustained its growth trajectory, reaching approximately 175 million annual transacting users in 2024

E-commerce firm Meesho said it was concluding 2024 with a 35 per cent year-on-year increase in orders, over half of which were placed by buyers living in small towns.

 

The firm has reached approximately 175 million annual transacting users this year so far despite challenging market conditions. And interestingly, about 50 per cent of its user base comes from tier 4+ towns like Naidupeta in Andhra Pradesh, Sherghati in Bihar, and Harapanahalli in Karnataka).

 

The platform also retained its position as the most downloaded shopping application for the fourth consecutive year, surpassing 210 million downloads.

 

Meesho competes with players such as Amazon, Flipkart, Snapdeal and Reliance’s JioMart.

 

 

This growth is also reflected in Meesho’s financial performance.

 

In the financial year 2024 (FY24), the company became the first horizontal e-commerce platform to generate operating cash flow of Rs 232 crore for the full year. Revenue from operations in the same period rose by 33 per cent, reaching Rs 7,615 crores. This was largely driven by the increase in annual transacting users and a higher order frequency from loyal repeat customers.

 

Small towns: Key growth drivers

 

Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in e-commerce user growth, highlighting the vast untapped potential of tier 2+ markets.

 

This trend signals a broader shift in Indian consumer behaviour, with increasing demand for value-driven and high-quality products. This is driving a resurgence of consumption in smaller towns.

 

Categories such as beauty and personal care (BPC), and home and kitchen (H&K) saw a cumulative 70 per cent year-on-year growth in orders. Similar trends were observed on Meesho Mall, which experienced a 117 per cent increase in orders. Leading brands such as Lotus (6X growth), Joy (5.5X growth), Renee (3.5X boost), and Dollar (1.8X increase) benefited from this growing digital shift.

 

Repeat shoppers from metro cities like Delhi, Bengaluru, and Hyderabad further strengthened Meesho’s broad appeal.

 

Gen Z: eco-conscious, practical consumers

 

Gen Z (those born in late 1990s and early 2000), now accounting for one-third of Meesho's user base, is rapidly emerging as the fastest-growing demographic in India’s e-commerce space.

 

Meesho has seen a notable surge in demand for products aligned with Gen Z’s values. These include those that are eco-conscious, practical, and focused on self-care. Items such as glass sippers, reusable straws, makeup wipes, sneakers, and resistance bands have seen a significant increase in orders.

 

For nearly 75 per cent of Gen Z shoppers on Meesho, purchasing trendy or viral products is a way of expressing their individuality. Over half of these shoppers use the wishlist feature to save items they aspire to own. Many also monitor discounts closely, showcasing a savvy mix of aspiration and budget-consciousness. Creators and influencers have further fuelled this trend. This is helping Gen Z discover new items and driving engagement with the platform.

 

AI: A helping hand

 

Meesho said it is using GenAI in e-commerce with the launch of India’s first large-scale multilingual AI-powered voice bot.

 

This tool sets a new standard for customer support by offering personalised, human-like assistance in multiple languages. Designed to cater to the diverse and multilingual landscape of India, the voice bot ensures seamless communication, achieving 10 per cent higher Customer Satisfaction (CSAT) scores compared to human agents during its pilot phase and demonstrating 80 per cent resolution rate.

 

AI-powered product recommendations, vernacular voice search, and AI-driven translations for product descriptions help break down language barriers and simplify navigation.

 

Meesho is also innovating in last-mile delivery by using AI to accurately translate customer addresses, overcoming logistical challenges in both urban and rural areas.

 

Curbing fraud transactions

 

In 2024, Meesho continued to strengthen platform safety and user trust through its comprehensive Project Vishwas. In the past year, the initiative has successfully prevented over 22 million fraudulent transactions, blocked 7.7 million scam attempts, and significantly reduced lottery fraud by 75 per cent.

 

Collaborating closely with law enforcement agencies, Meesho achieved a 98 per cent success rate in addressing account takeover fraud and filed multiple FIRs, leading to arrests and decisive action against culprits. The company also took down 18,000 fake social media accounts and 130 fraudulent websites or apps. Such efforts are powered by advanced analytical models, AI-driven fraud detection tools, and a dedicated Quick Response Team.