Meesho shares gain 5% as festive sale orders surge; what Axis Securities says

Meesho Ltd shares rose 5% on Monday morning after its 'Mega Blockbuster Sale' recorded 75% year-on-year (YoY) growth in orders on Day 1, with peak volumes crossing 75,000 orders per minute within 15 minutes of the sale going live. The e-commerce platform informed stock exchanges that it saw the number of transacting customers rise around 60% YoY, with demand spanning fashion, home and kitchen, beauty and personal care, kids' products and electronic accessories.

Following the development, Meesho shares rose to a day's high of Rs 243.20, up 4.51% from the previous close of Rs 232.70.

Meesho Mall, AI-led discovery drive festive demand

Meesho said orders through Meesho Mall, its branded shopping offering, grew more than 200% YoY on the first day of the sale. Tier 3 and smaller-market customers nearly tripled, while more than one in three shoppers purchased a Mall product for the first time across over 1,000 brands.

The company said festive demand extended beyond apparel to beauty, home decoration and puja-related products. Orders for torans and wall hangings increased eightfold, while demand for ear-lobe support patches for heavy earrings rose nearly sevenfold. Orders for rosemary hair care products grew more than sixfold.

Personalised recommendations played a significant role in product discovery, powering around 85% of Day 1 orders. Meesho said this reflects the growing role of AI-led discovery in connecting customers with products during the festive shopping period.

Fashion remained a key category, with sarees, kids' clothing sets and kurta sets among the most-shopped products. The company also reported increased demand for festive preparation items, including decorative lights, candles, incense, kitchen cleaners and puja essentials.

Seller participation and creator-led commerce gain momentum

The surge in orders was accompanied by higher seller participation. The number of transacting sellers rose around 63% YoY, while participation from sellers in Tier 4 and smaller markets doubled. Sellers receiving their first-ever order on Day 1 increased around 43% YoY, indicating wider participation across the platform.

The sale's early performance points to festive demand across customer segments, product categories and seller networks. Meesho said it remains focused on making festive shopping accessible across India while enabling sellers, brands and creators to reach more customers.

Axis Securities sees scope for Meesho Mall monetisation

Axis Securities said Meesho Mall's orders grew over 200% year-on-year (YoY) on Day 1 of the festive sale, albeit on a low base, with more than one in three customers making their first purchase from the platform. The brokerage said the segment could support advertising monetisation as branded sellers are likely to have a higher propensity to pay. Marketplace advertising revenue stood at around 3% of net merchandise value (NMV) in the first quarter, which Axis Securities expects to rise to around 4.5% by FY30, supported by a growing seller base and increasing prominence of Meesho Mall.

The brokerage also highlighted the potential of Content Commerce, where orders grew 3.7 times YoY, supported by around 1.6 lakh content creators, nearly 90% of whom are nano creators and around 81% of whom are from non-metro areas. However, Axis Securities said monetisation in this segment remains nascent, and its contribution to margins will depend on execution and scale.