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Jan 30 (Reuters) – Indian e-commerce firm Meesho’s quarterly loss widened sharply in its first earnings report since the blockbuster market debut in December last year, as costs rose.
The firm’s consolidated net loss widened to 4.91 billion rupees ($53.44 million) for the quarter ended December 31, compared to a loss of 374.3 million rupees a year ago while expenses rose 44% to 40.71 billion rupees.
Revenue rose nearly 32% to 35.18 billion rupees as India’s growing online consumer base looks for cheaper and more convenient ways to shop.
The company, backed by Softbank RIC and Peak XV Partners, has carved out a niche for itself by offering low-priced products without charging sellers a commission, in a space that has giants such as Amazon.com and Walmart-owned Flipkart vying for customers in the world’s most populous country.
Consumer firms in India are witnessing a rebound in demand after a lull period as tax cuts and festive demand have lifted spending.
Shares of the closed nearly 3% higher ahead of the results.
($1 = 91.8770 Indian rupees)
(Reporting by Komal Salecha in Bengaluru; Editing by Mrigank Dhaniwala)