Meesho vs MercadoLibre: Revenue, Profit and Business Model
Meesho had ~$1.5B of annual revenue in FY2026 and a net loss of ~$157.5M. MercadoLibre had $28.9B of annual revenue in FY2025 and $2B of net income.
Latest financial snapshot
Meesho
- Latest annual revenue
- ~$1.5B (FY2026)
- Net income
- ~-$157.5M
- Net margin
- -10.8%
- Revenue growth
- +40.6% a year, FY2022–FY2026
MercadoLibre
- Latest annual revenue
- $28.9B (FY2025)
- Net income
- $2B
- Net margin
- 6.9%
- Revenue growth
- +48.1% a year, FY2016–FY2025
Financial summary
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.
MercadoLibre
Revenue has compounded quickly: $10.8 billion in 2022, $15.1 billion in 2023, $20.8 billion in 2024 and $28.9 billion in 2025. Net income rose from $482 million in 2022 to about $2.0 billion in 2025, and 2025 operating cash flow was about $12.1 billion, boosted by fintech balances. Margins are now under pressure. In Q2 2026, revenue grew 50% to $10.2 billion, but operating income was $683 million (a 6.7% margin) and net income fell 11% to $466 million, or $9.19 per share. The drivers were credit-card expansion, free-shipping subsidies and first-party retail investment. MercadoLibre, Inc. is the absolute largest e-commerce and payments ecosystem in Latin America, commanding a monumental market valuation generally exceeding $80 billion.
Revenue and profit by year
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 |
MercadoLibre
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $28.9B | $2B | 6.9% | +39.1% | Source |
| FY2024 | $20.8B | $1.9B | 9.2% | +37.5% | Source |
| FY2023 | $15.1B | $987M | 6.5% | +40.1% | Source |
| FY2022 | $10.8B | $482M | 4.5% | +52.5% | Source |
| FY2021 | $7.1B | $83M | 1.2% | +77.9% | Source |
| FY2020 | $4B | -$1M | -0.0% | +73.1% | Source |
| FY2019 | $2.3B | -$172M | -7.5% | +59.5% | Source |
| FY2018 | $1.4B | -$36.6M | -2.5% | +18.3% | Source |
| FY2017 | $1.2B | $13.8M | 1.1% | +44.1% | Source |
| FY2016 | $844.4M | $136.4M | 16.1% | — | Source |
Where the revenue comes from
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.
MercadoLibre
- Commerce (Mercado Libre)
Not formally reported
Seller commissions on marketplace sales, shipping and fulfillment fees through Mercado Envios, advertising through Mercado Ads, and some first-party retail.
- Fintech (Mercado Pago)
Not formally reported
Merchant fees on online and in-store payments, plus interest on consumer loans, merchant loans and credit cards. Assets under management reached $23 billion in Q2 2026.
Business model and strategy
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.
MercadoLibre
How it makes money
MercadoLibre makes money in two ways. Commerce (Mercado Libre) charges sellers commissions on marketplace sales, collects shipping and fulfillment fees through Mercado Envios, sells advertising through Mercado Ads, and runs some first-party retail.
Growth strategy
Growth is coming from three places. First, buyer frequency: unique active buyers rose 26% to 89.3 million in Q2 2026 after Brazil's free-shipping threshold was lowered. Second, fintech depth: Mercado Pago monthly active users grew 30% to 88 million, quarterly payment volume topped $100 billion, and the credit book reached $16.4 billion. Third, higher-margin add-ons such as Mercado Ads and the Meli+ subscription.
Competitive advantage
MercadoLibre's main edge is that commerce, payments, credit and logistics all sit inside one company. It runs its own fulfillment centers, delivery fleet and Meli Air cargo flights, so it controls delivery speed in markets where postal services are unreliable.
Questions about Meesho vs MercadoLibre
Which company has higher revenue — Meesho or MercadoLibre, Inc.?
Meesho had ~$1.5B (FY2026), while MercadoLibre, Inc. had $28.9B (FY2025). By latest annual revenue, MercadoLibre, 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 Meesho vs MercadoLibre, Inc.?
Meesho's market capitalisation stands at $10.0B, while MercadoLibre, Inc.'s is $89.0B. MercadoLibre, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Meesho.
How does revenue per employee compare for Meesho and MercadoLibre, Inc.?
Meesho has $705k / employee in revenue per employee, while MercadoLibre, Inc. has $234k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Meesho and MercadoLibre, Inc. make money?
Meesho and MercadoLibre, Inc. generate revenue in fundamentally different ways. Meesho: Meesho runs a third-party marketplace: independent sellers list products, and Meesho does not hold inventory or charge a sales commission. MercadoLibre, Inc.: MercadoLibre makes money in two ways.
Which company is valued higher relative to revenue — Meesho or MercadoLibre, Inc.?
On a price-to-sales (P/S) basis, Meesho trades at 6.8x P/S and MercadoLibre, Inc. at 3.1x P/S. Meesho commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to MercadoLibre, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Meesho bigger than MercadoLibre, Inc.?
By last reported revenue, MercadoLibre, Inc. ($28.9B (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 Meesho vs MercadoLibre overview