Shares of the e-commerce platform Meesho slipped 5% this week following guidance that pointed toward decelerating growth for the September quarter. The company cited a strategic rescheduling of its primary festive sale events as a key factor in the projected slowdown.
Management also highlighted that heightened spending on customer acquisition is weighing on the short-term outlook. Analysts from major financial houses, including Citi and Morgan Stanley, are closely evaluating how these expenses will impact the firm's path to profitability in a tightening competitive landscape.
Despite the cooling sentiment, the company reported a significant improvement in its bottom line. Meesho successfully narrowed its quarterly losses to Rs 133 crore, a marked improvement compared to the Rs 289 crore loss recorded during the same period last year.
The market remains divided on whether the company's aggressive customer acquisition strategy will pay off in the long run. Investors are currently awaiting further data to see if the rescheduled festive sales can offset the losses reported earlier in the quarter.
