Etsy vs Meesho: Revenue, Profit and Business Model
Etsy had $2.9B of annual revenue in FY2025. Meesho had ~$1.5B of annual revenue in FY2026 and a net loss of ~$157.5M.
Latest financial snapshot
Financial summary
Etsy
Etsy earns money from fees on a marketplace it does not stock, so gross margin stays near 72% (FY2025 gross profit was $2.07B on $2.88B of revenue). The pandemic pulled demand forward: GMS more than doubled to $10.3B in 2020, then consolidated GMS declined from $13.3B in 2022 to $11.9B in 2025. Revenue held up only because the take rate rose from 22.3% to 24.2% as sellers paid more for advertising and payments. FY2025 net income fell 46.3% to $163.0M as operating expenses rose 8.8%. In 2026 the picture improved: Q2 revenue was $668M, adjusted EBITDA was $195M (a 29.2% margin), and Etsy guided to mid-single-digit full-year GMS growth. Etsy, Inc. is a major American e-commerce company focused on handmade and vintage items, maintaining a market valuation generally exceeding $7 billion.
Meesho
Meesho's revenue from operations grew from ~$375 million (₹3,233 crore) in FY2022 to ~$1.46 billion (₹12,626 crore) in FY2026. Losses shrank from ~$377 million (₹3,248 crore) in FY2022 to ~$35.4 million (₹305 crore) in FY2024, then jumped to ~$457 million (₹3,942 crore) in FY2025 largely because of a one-time tax charge tied to moving its holding company from the US to India. FY2026 net loss was about $158 million (₹1,358 crore). In Q1 FY27 (April-June 2026) revenue rose 48% year on year to ~$431 million (₹3,713 crore) and net loss narrowed to ~$15.4 million (₹132.8 crore). The December 2025 IPO included a ~$493 million (₹4,250 crore) fresh issue. Meesho is a dominant and incredibly fast-growing Indian e-commerce marketplace, achieving a private market valuation of approximately $5 billion while severely undercutting competitors on seller fees.
Revenue and profit by year
Etsy
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2.9B | — | — | +2.7% | Source |
| FY2024 | $2.8B | — | — | +2.2% | Source |
| FY2023 | $2.7B | — | — | +7.1% | Source |
| FY2022 | $2.6B | — | — | +10.2% | Source |
| FY2021 | $2.3B | $493.5M | 21.2% | +35.0% | Source |
| FY2020 | $1.7B | $349.2M | 20.2% | +110.9% | Source |
| FY2019 | $818.4M | $95.9M | 11.7% | +35.6% | Source |
| FY2018 | $603.7M | $77.5M | 12.8% | +36.8% | Source |
| FY2017 | $441.2M | $81.8M | 18.5% | +20.9% | Source |
| FY2016 | $365M | -$29.9M | -8.2% | — | Source |
Meesho
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$1.5B | ~-$157.5M | -10.8% | +34.5% | Source |
| FY2025 | ~$1.1B | ~-$457.2M | -42.0% | +23.3% | Source |
| FY2024 | ~$883.3M | ~-$35.4M | -4.0% | +32.8% | Source |
| FY2023 | ~$665.3M | ~-$194.3M | -29.2% | +77.4% | Source |
| FY2022 | ~$375M | ~-$376.7M | -100.5% | — | Source |
Where the revenue comes from
Etsy
- Marketplace Revenue~69.6%
Marketplace revenue includes the 6.5% transaction fee, $0.20 listing fees, and Etsy Payments processing fees. It totaled $2,007.2 million in FY2025, down 0.7% from $2,020.7 million in FY2024, as lower GMS offset fee and payments gains.
- Services Revenue~30.4%
Services revenue includes Etsy Ads (on-site, cost-per-click), Offsite Ads fees and shipping labels. It totaled $876.3 million in FY2025, up 11.3% from $787.6 million in FY2024, and drove all of the year's revenue growth.
- Other Revenue
Not separately reported
Etsy does not break out a separate "other" line in its FY2025 results; total revenue is reported as Marketplace plus Services. Any residual items are immaterial.
- Subsidiary Marketplace Revenue (Discontinued)
~0% (divested)
Reverb was included until its June 2, 2025 sale. Depop is reported as discontinued operations in 2026 and was sold to eBay on July 30, 2026. In FY2025 Depop generated about $1.07 billion of GMS.
Meesho
- Advertising
Not formally reported
Sellers pay for visibility in search and feeds. Meesho does not charge a sales commission.
- Logistics and fulfilment fees
Not formally reported
Charged to sellers. Meesho's logistics marketplace, Valmo, handled about 50% of volumes in 2026.
- Other seller services
Not formally reported
Value-added services. Revenue from operations was ~$1.46 billion (₹12,626 crore) in FY2026.
Business model and strategy
Etsy
How it makes money
Etsy operates a pure B2C and C2C two-sided marketplace model. They do not own warehouses or delivery trucks. They simply provide the software platform connecting buyers and sellers. The core revenue engine relies entirely on 'Take Rates'. The seller pays a fee just to list an item, and then Etsy takes a large cut (often over 6.5%) of the final sale price, plus payment processing fees.
Growth strategy
With growth in its core market flat, Etsy is concentrating on search and on removing mass-produced goods. It has more than 100 million unique items, which makes searching hard, so it is investing in AI to improve search relevance. It is also removing sellers of cheap mass-produced items, often dropshipped from China and presented as handmade, to protect the brand's reputation for genuine handmade goods.
Competitive advantage
Etsy's advantage is a recognizable brand and a two-sided network. Buyers come because the handmade and vintage sellers are there, and sellers list because the buyers are there. A new competitor would start with neither side, which makes the handmade category hard to enter.
Meesho
How it makes money
Meesho runs a third-party marketplace: independent sellers list products, and Meesho does not hold inventory or charge a sales commission. Revenue comes mainly from services sold to sellers, chiefly advertising (paid visibility in search and feeds) and logistics/fulfilment fees, plus other value-added services.
Growth strategy
Meesho's growth plan centres on adding new shoppers in smaller towns, raising purchase frequency (10.1 orders per annual user in FY2026), lowering delivery costs through Valmo and passing savings on as lower prices, growing seller advertising, and broadening categories, including groceries. It also uses AI heavily in operations; in May 2026 it said more than 70% of its code was AI-generated.
Competitive advantage
Meesho's edge is cost. Zero seller commission keeps listing prices low, which pulls in price-sensitive buyers, which in turn pulls in more small sellers. Its scale (2.67 billion orders in FY2026) lets it negotiate shipping rates and run Valmo, cutting the cost of delivering low-ticket parcels to smaller towns. Management said in July 2026 it intends to pass delivery-cost savings back to customers as lower prices.
Questions about Etsy vs Meesho
Which company has higher revenue — Etsy, Inc. or Meesho?
Etsy, Inc. had $2.9B (FY2025), while Meesho had ~$1.5B (FY2026). By latest annual revenue, Etsy, Inc. is the larger business, with Meesho showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Etsy, Inc. vs Meesho?
Etsy, Inc.'s market capitalisation stands at $6.7B, while Meesho's is $10.0B. Meesho carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Etsy, Inc..
How does revenue per employee compare for Etsy, Inc. and Meesho?
Etsy, Inc. has $1.20M / employee in revenue per employee, while Meesho has $705k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Etsy, Inc. and Meesho make money?
Etsy, Inc. and Meesho generate revenue in fundamentally different ways. Etsy, Inc.: Etsy operates a pure B2C and C2C two-sided marketplace model. Meesho: Meesho runs a third-party marketplace: independent sellers list products, and Meesho does not hold inventory or charge a sales commission.
Which company is valued higher relative to revenue — Etsy, Inc. or Meesho?
On a price-to-sales (P/S) basis, Etsy, Inc. trades at 2.3x P/S and Meesho at 6.8x P/S. Meesho commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Etsy, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Etsy, Inc. bigger than Meesho?
By last reported revenue, Etsy, Inc. ($2.9B (FY2025)) is the larger company compared to Meesho (~$1.5B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Etsy vs Meesho overview