Softbank-backed e-commerce platform Meesho on Tuesday said it is on the path to profitability and plans to expand its user base to 150 million transacting users by December 2022.

Meesho was valued at $4.9 billion at its last round of funding. The company said it has recorded over 100 million transacting users in the last year with customers from tier II markets being the key growth drivers, accounting for 80 per cent of the shoppers on the platform. Since March 2021, the gross merchandise value on the platform has increased three times.

“Meesho has always been unit economics positive. Our aim is to turn cash flow positive by the end of this fiscal year,” said Megha Agarwal, CXO, growth, at Meesho.

“We have a goal to have 150 million transacting users by December 2022. With initiatives such as zero commission and zero penalties, we aim to help small businesses grow online,” Agarwal said.

The total number of sellers has crossed 7 lakh and more than 30,000 small businesses from Bengal are now registered on the platform.