Meesho’s free cash flow turned negative at ₹633 crore in FY26 from a positive ₹591 crore a year earlier, as the e-commerce company increased spending on user acquisition and growth initiatives while navigating temporary logistics-related headwinds, according to its annual report.
The cash-flow deterioration came despite strong operating growth. Meesho’s annual transacting users rose 33 per cent to 264 million, while placed orders increased 45.5 per cent to 2.67 billion. Marketplace net merchandise value (NMV) grew 38.6 per cent to ₹41,560 crore.
The company said its investments in user acquisition, alongside higher logistics costs following consolidation in the third-party logistics industry, flowed through directly into free cash flow. Its marketplace adjusted EBITDA margin consequently widened to a loss of 2.8 per cent of NMV in FY26 from 0.4 per cent in FY25, while contribution margin declined to 3.5 per cent from 4.9 per cent.
On a consolidated basis, revenue from operations increased 34.5 per cent to ₹12,626 crore in FY26. Net loss, however, narrowed 65.6 per cent to ₹1,358 crore, largely because of one-time expenses linked to the previous year’s corporate restructuring.
Despite the cash outflow, Meesho ended FY26 with ₹6,750 crore in cash, compared with ₹6,593 crore a year earlier. The company received ₹4,125 crore from its IPO, partly offset by ₹3,344 crore in restructuring costs and related taxes.
The annual report also highlights a growing push into AI, with Meesho saying its Vaani voice-shopping agent crossed 1.5 million users in its first month and delivered a 22 per cent conversion lift among adopters.
Published on August 26, 2026
