Meesho Reports 70% of Code is AI-Generated Amid 44% Increase in Q4 Income
Meesho, the SoftBank-backed e-commerce platform, has reported a significant increase in its total income, rising 44.4% year-on-year to reach Rs 3,646.9 crore in the March quarter. The company has also made strides in reducing its losses, which amounted to Rs 160 crore for the quarter, down from Rs 190.8 crore a year earlier. As Meesho continues to enhance its operations through artificial intelligence, it has seen substantial growth in user engagement and merchandise value, indicating a robust performance in the competitive e-commerce landscape.
Financial Performance and Growth Metrics
In the fourth quarter of FY26, Meesho’s total income surged to Rs 3,646.9 crore, marking a 44.4% increase compared to the same period last year. The company’s losses narrowed to Rs 160 crore, a notable improvement from the Rs 190.8 crore loss reported in the previous year. However, losses widened sequentially from Rs 110.2 crore in the December quarter. For the entire financial year FY26, Meesho’s total income rose by 32.3%, reaching Rs 13,099 crore, up from Rs 9,900.9 crore in FY25. The company’s annual loss also decreased significantly to Rs 572.3 crore from Rs 1,674.7 crore the previous year, showcasing a positive trend in financial health.
Meesho’s net merchandise value (NMV) grew by 43% year-on-year to Rs 11,371 crore in Q4 FY26. Additionally, the number of annual transacting users increased by 33%, reaching 264 million during FY26. The company reported a remarkable 45% increase in orders for the year, totaling 2.67 billion. These figures reflect Meesho’s expanding market presence and its ability to attract a growing customer base.
Artificial Intelligence Integration
Meesho has made significant advancements in integrating artificial intelligence into its operations. The company revealed that over 70% of its code is now AI-generated, enhancing various aspects of its platform, including code generation, testing, and deployment. In its recent shareholder letter, Meesho highlighted that platform experiments doubled in Q4 compared to the previous year, indicating accelerated product development cycles.
Founder and CEO Vidit Aatrey noted that more than 75% of orders on Meesho now originate from personalized feeds, which anticipate user needs even before they search for products. This innovative approach to user engagement has contributed to the platform’s growing popularity. Furthermore, Meesho introduced “Vaani,” an AI-powered voice shopping agent that enables users to shop in vernacular languages through conversational prompts. This feature quickly gained traction, attracting over 1.5 million users within its first month and achieving a 22% conversion lift for those who adopted it.
User Engagement and Market Expansion
During an analyst call, Chief Financial Officer Dhiresh Bansal emphasized the increasing frequency of user engagement on the platform. He noted that despite expanding into smaller Indian markets, user frequency has been on an upward trend for the past three years. Newer user cohorts are starting with a higher engagement baseline compared to those acquired three years ago, indicating a positive shift in user behavior.
Bansal also mentioned Meesho’s plans to enhance automation across its sort centers in the coming years while continuing to grow its advertising business. He highlighted that the return on ad spend on Meesho remains significantly higher than that of other e-commerce platforms, which has encouraged greater seller participation on the platform. Notably, 88% of Meesho’s annual transacting users come from outside the top eight Indian cities, underscoring the company’s successful penetration into underserved markets.
Future Outlook
As Meesho continues to innovate and expand its operations, the company is well-positioned to capture a larger share of the e-commerce market in India. With a strong focus on artificial intelligence and user engagement, Meesho aims to enhance its platform further and improve the shopping experience for its users. The company’s commitment to automation and advertising growth will likely play a crucial role in its future success. As it navigates the competitive landscape, Meesho’s strategic initiatives and robust financial performance suggest a promising trajectory ahead.
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