BENGALURU, Oct. 28 -- E-commerce platform Meesho expects higher spending on customer acquisition and technology to weigh on its economics into the December quarter, tempering the improvement in contribution margins it reported for the September quarter.

"For Q3, growth spend will stay elevated through the sale and the weeks around Diwali, as it does every festive quarter, and technology costs will stay higher until our optimisations take effect," Meesho said in its shareholders' letter on Wednesday.

The outlook follows an improvement in contribution margin to 6% of net merchandise value (NMV) in the September quarter, from 4.6% in the preceding quarter. Meesho cautioned that the gains may not last. "We may not hold contribution margin a...