Bengaluru: Social commerce startup Meesho, which took on bigger rivals Amazon and Flipkart after entering the consumer-facing ecommerce segment a year ago, is now shifting gears.
It is bracing for relatively slower growth amid a slowdown in big-ticket funding and an adverse macroeconomic situation.
The SoftBank-backed company is targeting to cut its monthly cash burn to $25 million from about $40-$45 million.
The company has told at least one of its third-party logistics partners – among the largest nationally — that it expects shipment volumes to decrease by about 25-30% in the next two quarters.
The e-tailer, which focuses on the low-end of the market, will push the pedal during the festive season, when the retail industry looks to corner a significant chunk of annual sales.
“There is a readjustment happening. As one of the largest ecommerce players relying on third-party logistics, they (Meesho) work with us closely and plan things in advance and recently this (shipment volumes issue) was discussed,” a person aware of the matter said.
Meesho has also begun preparations for the festive season sales, when Amazon and Flipkart unfurl competitive discounting and sales tactics.
Sources in the know told ET that Meesho’s internal initiative ‘Project Unbundle’ has gained in prominence as it is focused on reducing costs across the board and on monetisation.
Returns are typically higher for lower-priced ecommerce players like Meesho but the company maintains it is no…
