Meesho vs Rakuten: Revenue, Profit and Business Model
Meesho had ~$1.5B of annual revenue in FY2026 and a net loss of ~$157.5M. Rakuten had ~$16.7B of annual revenue in FY2025 and a net loss of ~$1.2B.
Latest financial snapshot
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.
Rakuten
Rakuten's results for most of the 2020s were shaped by one decision: building Japan's fourth mobile network from 2018 onward. Net losses reached ~$2.5 billion (¥372.9 billion) in FY2022 and ~$2.27 billion (¥339.5 billion) in FY2023 while revenue kept growing. Losses narrowed to ~$1.09 billion (¥162.4 billion) in FY2024 and about $1.19 billion (¥177.9 billion) in FY2025 on revenue of ~$16.8 billion (¥2.50 trillion). The turn came in Q2 2026: revenue of ~$4.46 billion (¥665.5 billion) (+11.6%), EBITDA of ~$773 million (¥115.3 billion) and net income of ~$182 million (¥27.2 billion), the first quarterly profit since Q2 2020, with management targeting a full-year profit for 2026. Rakuten Group, Inc. is a massive Japanese electronic commerce and online retailing company, operating a highly diverse global ecosystem with a market valuation generally exceeding $10 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 |
Rakuten
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$16.7B | ~-$1.2B | -7.1% | +9.5% | Source |
| FY2024 | ~$15.3B | ~-$1.1B | -7.1% | +10.0% | Source |
| FY2023 | ~$13.9B | ~-$2.3B | -16.4% | +7.4% | Source |
| FY2022 | ~$12.9B | ~-$2.5B | -19.3% | +14.6% | Source |
| FY2021 | ~$11.3B | ~-$896.6M | -8.0% | — | 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.
Rakuten
- Internet Services (Rakuten Ichiba, Travel, Rewards)Segment
Merchant fees and commissions, advertising, travel bookings and affiliate cash-back commissions.
- FinTech (Rakuten Card, Bank, Securities, Payment)
Segment (~$1.98B (¥295.4B) revenue in Q2 2026)
Card interchange and revolving interest, deposit spreads, brokerage commissions and payment fees.
- Mobile (Rakuten Mobile, Rakuten Symphony)Segment
Monthly mobile subscriptions and Open RAN telecom software and services sold to other operators.
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.
Rakuten
How it makes money
Rakuten makes money from three segments tied together by one Rakuten ID and Rakuten Points. Internet Services (Rakuten Ichiba, Rakuten Travel, Rakuten Rewards, Kobo) earns merchant fees, commissions and advertising, since Ichiba is a marketplace where independent shops run their own storefronts rather than a first-party retailer.
Growth strategy
Rakuten's growth strategy rests on three moves: push Rakuten Mobile toward sustained profitability by adding subscribers who also use other Rakuten services; deepen FinTech by consolidating card, bank and securities under Rakuten Bank to cut funding costs and cross-sell deposits in a rising-rate Japan; and apply AI across Ichiba search, recommendations and merchant tools to lift gross merchandise sales.
Competitive advantage
Rakuten's main edge is cross-use. A single Rakuten ID links shopping, card, bank, brokerage and mobile accounts, and the SPU program raises point rewards for customers who use several services. That base is large: Rakuten Bank had 18.46 million accounts and Rakuten Securities 14.39 million accounts in Q2 2026, and Rakuten Card shopping volume reached ~$186 billion (¥27.7 trillion) over the trailing twelve months.
Questions about Meesho vs Rakuten
Which company has higher revenue — Meesho or Rakuten?
Meesho had ~$1.5B (FY2026), while Rakuten had ~$16.7B (FY2025). By latest annual revenue, Rakuten 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 Rakuten?
Meesho's market capitalisation stands at $10.0B, while Rakuten's is $9.8B. Meesho carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Rakuten.
How does revenue per employee compare for Meesho and Rakuten?
Meesho has $705k / employee in revenue per employee, while Rakuten has $507k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Meesho and Rakuten make money?
Meesho and Rakuten 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. Rakuten: Rakuten makes money from three segments tied together by one Rakuten ID and Rakuten Points.
Which company is valued higher relative to revenue — Meesho or Rakuten?
On a price-to-sales (P/S) basis, Meesho trades at 6.8x P/S and Rakuten at 0.6x P/S. Meesho commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Rakuten. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Meesho bigger than Rakuten?
By last reported revenue, Rakuten (~$16.7B (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 Rakuten overview