Meesho's 68% Smaller Q2 Loss Is Flat on Q1, and New Initiatives Lost Three Times More
Startups / news
Meesho's 68% Smaller Q2 Loss Is Flat on Q1, and New Initiatives Lost Three Times More
Revenue rose 34% to ₹4,132 crore, but ₹109 crore of the year-ago loss was one-off, and Peak XV, Elevation and Y Combinator sold shares in the interim.
Meesho reported a consolidated net loss of ₹132 crore for the September quarter of FY27, down 68% from ₹411 crore a year earlier, on revenue from operations of ₹4,132 crore, up 34%. The figures are from Entrackr and Inc42, which agree to within a crore.
The 68% is true, and it is the least useful number in the results. Against the previous quarter the loss did not move.
What the 68% hides
Inc42 reports Meesho's net loss was ₹132.4 crore, against ₹132.8 crore in Q1 FY27. Revenue rose 11% over the same quarter-on-quarter step, from ₹3,713 crore per Entrackr to ₹4,131.6 crore. Growth of that size did not shrink the loss.
The year-ago comparison was also flattered. Q2 FY26 carried ₹45 crore of exceptional expenses and a ₹64.4 crore tax charge, neither repeated this time, per Inc42. Together that is ₹109.4 crore of the ₹279 crore improvement. Strip them out and the loss before exceptional items and tax narrowed 57%, from ₹285.5 crore to ₹123.3 crore, which is still a large gain but a different headline.
- Q2 FY26411.4 ₹ crore
- Q1 FY27132.8 ₹ crore
- Q2 FY27132.4 ₹ crore
Source: Inc42 and Entrackr, Q2 FY27 results, accessed 2026-10-28
Where the money still goes
Total expenses rose 24% to ₹4,382.3 crore from ₹3,540.4 crore, slower than revenue, which is where the operating improvement lives. Total income including ₹127.4 crore of other income was ₹4,259 crore.
| Segment or line | Q2 FY27 | Comparison |
|---|---|---|
| Marketplace EBITDA loss | ₹130 crore | Entrackr |
| New initiatives loss | ₹41.6 crore | ₹13.5 crore a year earlier |
| New initiatives revenue | ₹11.6 crore | Entrackr |
| Employee benefit expense | ₹281 crore | ₹237 crore, up about 18% |
The new initiatives segment lost ₹41.6 crore on ₹11.6 crore of revenue. It spent roughly ₹3.60 in losses for every rupee it earned, and its loss is 3.1 times the year-ago figure. Entrackr gives the segment's EBITDA loss as ₹42 crore, so the two sources use slightly different measures for nearly the same number. Meesho did not disclose a revenue breakdown.
Who sold during the quarter
Entrackr reports that in August Peak XV Partners and Elevation Capital sold a combined 2.27% stake for about ₹1,949 crore through block deals, and that Y Combinator later sold a stake worth about ₹970 crore. The sales were reported as completed; the outlet did not give the buyers.
At Wednesday's close of ₹227.84 a share, Entrackr puts market capitalisation at about ₹1,05,456 crore, or about $11.1 billion. Neither outlet carried management commentary in the pieces fetched.
Other Indian rounds we have covered show how much smaller the venture-backed peer set is: Live2 AI's ₹130 crore IvyCap secondary and Simplismart's $14 million Series B.
What to watch next
The Q3 FY27 results are the test. If the net loss falls below ₹132 crore on a festive quarter, the Q2 flatness was timing. If it stays near ₹132 crore while the new initiatives loss keeps rising, the improvement is mostly the Q2 FY26 one-offs dropping out.
Sources
More in Startups
- 01Yulu Lost Rs 97 Crore in FY26. Its CEO Says It Was EBITDA-Positive. Both Can Be True Only on One DefinitionEntrackr's read of the consolidated accounts shows a negative 5.89% EBITDA margin, while Yulu told TechCrunch in August that it reached positive EBITDA last fiscal year.
- 02Agility Robotics' SPAC Will Raise About $465 Million, Down From $620 Million, Days Before the November 5 ListingChurchill Capital Corp XI's trust account is contributing about $164 million where the June announcement said $420 million. A $100 million equity cheque received since then closes part of the gap.
- 03StockGro Reports ₹113 Crore FY26 Profit, ₹14 Crore of It a Tax Credit, While Its IPO Size Stays UnsettledThe parent of the retail-investing app doubled revenue to ₹226.1 crore, but reports disagree on how much new stock the pending IPO will sell: ₹800 crore or up to ₹536 crore.
- 04Atomic Reached a $12.5 Million Series A in 17 Months, While Only 16% of the 2024 Seed Class Has Moved Past SeedCrunchbase News data show US Series A rounds down 28% in the third quarter, and the winners of that squeeze look like Atomic: AI, revenue growing fivefold and a repeat lead.