IPO-bound Meesho has emerged as the most important free money circulate generator amongst scaled listed e-commerce corporations in India in FY25. 

The corporate’s Final Twelve Months (LTM) free money circulate moved from damaging Rs 2,336 crore to a optimistic Rs 1,032 crore with curiosity revenue, and Rs 591 crore excluding curiosity revenue.

The efficiency highlights the impression of an asset-light, capital-efficient mannequin that helps the platform develop in each scale and depth with out heavy capital spending.

Meesho runs an asset-light enterprise mannequin. It doesn’t manufacture or promote private-label merchandise, maintain product stock, or function logistics infrastructure. This makes the platform extra capital-efficient than organised retail or e-commerce fashions that depend on bodily shops, warehousing, owned stock, or captive supply networks. 

In accordance with the UDRHP, platform-based fashions provide sooner scalability and asset-light constructions, which help extra capital-efficient progress, larger returns on capital, and stronger free money circulate technology.

By utilizing the present capability of sellers and logistics companions, Meesho has expanded shortly whereas protecting capital depth low. Over the previous few years, expertise corporations worldwide have moved from “progress at any value” to progress pushed by stronger unit economics and money technology.

PDD Holdings (Pinduoduo) generated $16.6 billion in free money circulate in FY24. MercadoLibre reported $1.3 billion in adjusted free money circulate for FY24, supported by scale throughout commerce, funds, and logistics. Uber Applied sciences generated $6.9 billion, and Airbnb delivered $4.5 billion with a free money circulate margin of about 40%.

These corporations share a typical mannequin: technology-led, asset-light marketplaces that convert operational effectivity into liquidity. As soon as a platform reaches community density, additional scale will increase margins and money circulate with out requiring equal ranges of capital funding. 

The identical fundamentals at the moment are seen and achievable in India. The corporate plans to strengthen money circulate technology by increasing scale, bettering monetisation, benefiting from community results, constructing working leverage, and sustaining low capital depth.