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Ecommerce firm Meesho has emerged as one of the fastest-growing players in the segment, a new report has found.

The report by AllianceBernstein suggests that a zero-commission model, coupled with Meesho’s strategic focus on Tier II cities, has contributed to the ecommerce company’s ability to gain market share.

The Bengaluru-headquartered company has shown a 32% year-on-year (YoY) growth, higher than its rivals Flipkart and Amazon India, which exhibited 21% and 13% growth, respectively, the report highlighted.

The Softbank-backed firm has a 48% share in total ecommerce downloads in India, as per the report. Of its Gross Merchandise Value (GMV), apparel and fashion comprise about 50%, while other categories like beauty and personal care and home and kitchen account for 8-10% of the GMV.

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Order value on the platform also increased over the last 12 months, with the company registering a healthy 43% YoY growth and seeing about 80% repeat customers.

“With a current GMV run rate exceeding $5 billion and an upward trajectory in downloads, Meesho is poised to be the key gainer in the Indian ecommerce landscape, gaining incremental market share,” said AllianceBernstein in the report.

Meesho also became the first ecommerce unicorn to post a consolidated net profit in the second quarter of FY24, while the company did not disclose the profit amount it earned in the July-September period.

During the first half of the current financial year, the company narrowed its losses to Rs 141 crore and increased its revenue by 37% on a YoY basis to Rs 3,521 crore.