Insanely insightful read! One puzzle popped up in my mind every time the executive team’s optionality to move seller margins ad pay from ASP reduction in the future was mentioned. Given products and vis-a-vis sellers enjoy a “democratic”, non-pareto distribution here, reducing margin reinvestment into lowering ASPs would repel price-sensitive customers and when done across the platform, would unwind the efforts being undertaken right now of their key metrics of customer acquisition. In this sense, the optionality doesn’t exist without sacrificing a limb in the future - making this core channel for monetisation a catch-22. How do you see them solving for this?
Great read on Meesho's journey - I had gone through the UDRHP + RHP + Analyst notes - this article surfaced a number of insights which I missed/ hadn't through e.g. the TAM ceiling driven by smartphone penetration, wallet share as % of discretionary budget, Meesho AI Shop & Meesho Mall
Hi guys - great piece just had a quick question regarding the numbers.
To use FY25 as an illustrative example - Contribution margin is 4.9% of NMV which has two constituents - ad revenue which is ~2% of NMV and logistics markup which is 3.7% of NMV. Both of the constituents when added up result in 5.7% margin vs 4.9% reported. Can you please help explain what I am missing? Thank you
Insanely insightful read! One puzzle popped up in my mind every time the executive team’s optionality to move seller margins ad pay from ASP reduction in the future was mentioned. Given products and vis-a-vis sellers enjoy a “democratic”, non-pareto distribution here, reducing margin reinvestment into lowering ASPs would repel price-sensitive customers and when done across the platform, would unwind the efforts being undertaken right now of their key metrics of customer acquisition. In this sense, the optionality doesn’t exist without sacrificing a limb in the future - making this core channel for monetisation a catch-22. How do you see them solving for this?
Great read on Meesho's journey - I had gone through the UDRHP + RHP + Analyst notes - this article surfaced a number of insights which I missed/ hadn't through e.g. the TAM ceiling driven by smartphone penetration, wallet share as % of discretionary budget, Meesho AI Shop & Meesho Mall
Very well written!
Thanks!
Hi guys - great piece just had a quick question regarding the numbers.
To use FY25 as an illustrative example - Contribution margin is 4.9% of NMV which has two constituents - ad revenue which is ~2% of NMV and logistics markup which is 3.7% of NMV. Both of the constituents when added up result in 5.7% margin vs 4.9% reported. Can you please help explain what I am missing? Thank you
geniuenly surprised how long and detailed each blogpost has been
how do you guys do with a full-time job?