Meesho, a SoftBank-backed e-commerce platform, has taken significant steps to combat counterfeit and restricted product listings on its platform. The company recently announced that it has successfully delisted nearly 42 lakh counterfeit and infringing product listings, along with 10 lakh restricted products, in the past six months. These delisted products account for approximately 5% of the total listed products on Meesho’s platform.
According to the company, its “Project Suraksha” systems have played a pivotal role in this achievement. Since February 2023, there has been an impressive 80% reduction in platform views for non-compliant listings. Furthermore, Meesho has effectively blocked over 12,000 bad actor accounts from accessing the platform, reinforcing its commitment to creating a safe and trustworthy environment for users.
Meesho’s Founder and Chief Technology Officer, Sanjeev Barnwal, revealed that the company utilized advanced techniques in computer vision and natural language understanding to fortify quality checks and identify counterfeit products and bad actors effectively. The company also maintains a dedicated quality and compliance team that proactively cross verifies automated signals to combat fraudulent practices, fostering user trust.
The platform has also created a “Suraksha List” comprising approximately 1,800 high-risk brands known for infringement and counterfeiting, allowing Meesho to implement stringent monitoring and protection measures.
Amid the ongoing challenges in the e-commerce sector, Meesho has been working towards a leaner organizational structure and sustainable profitability. In May, the company announced a workforce reduction of 15% in its third round of layoffs to align with its business goals.
Despite the workforce reduction, Meesho’s financials have shown positive trends. A recent report by Jefferies revealed that the platform has achieved contribution-margin positivity (pre-marketing and indirect spends) and is nearing zero cash burn, positioning it on track to achieve EBITDA breakeven this year.
As the Indian government frames a national e-commerce policy and consumer protection rules for the sector, Commerce and Industry Minister Piyush Goyal is scheduled to meet representatives from leading e-commerce firms, including Amazon, Flipkart, Tata CLiQ, Reliance, Zomato, Swiggy, and Meesho, along with domestic traders body CAIT. This meeting aims to discuss pertinent issues related to the e-commerce sector and address challenges faced by stakeholders.
