Fashnear Technologies, the holding company of social commerce app Meesho, reported a wider annual net loss as operating expenses increased.
The Bengaluru-based company’s net loss widened to Rs 100.4 crore, or Rs 63.52 per share, in the financial year ended March 31, 2019 from about Rs 5 crore, or Rs 28.38 per share, a year earlier.
Revenue rose to Rs 84.9 crore from Rs 6 crore a year ago.
Much of the company’s expenses went towards employee salaries, logistics, marketing and reseller bonus, discounts, rewards and reimbursement, regulatory filings show.
Meesho is engaged in the business of ecommerce that connects suppliers, buyers, and resellers to sell products on various social platforms like WhatsApp and Facebook. “The company tries to extend the business of the company and make an effort to achieve a good turnover in future and earn better revenues,” the board said in the filings.
In August, Meesho raised $125 million in a funding round, led by South African consumer internet group Naspers. The same fundraise had seen participation from social media platform Facebook, which had invested $25 million in the company in June.
Founded in 2015 by IIT Delhi graduates Vidit Aatrey and Sanjay Barnwal, Meesho lets re-sellers set a profit margin on a shared basis.
Last month, it dragged a rival GlowRoad and its ex-employees to court, alleging them of data theft. The companies also made scathing public statements online with GlowRoad chief executive officer Shekhar Sahu calling out Meesho for having served legal notices to its former employees.