Diabetic Macular Edema (DME) is a diabetes induced pathology which is responsible for degradation of visual health among diabetic patients. Its initial effects are blurred vision and may lead to complete loss of eyesight. Hence, it is crucial to detect the symptoms of DME at an early stage. Convolutional Neural Networks (CNN) are the most preferred systems for medical image classification. This paper proposes an efficient CNN model for automated classification of DME. Additionally, transfer learning is employed for 2 Pre-trained CNNs i.e. VGG16 & DenseNet. The performance of proposed CNN is compared with VGG16 and DenseNet in terms of classifier accuracy, loss function and Receiver Operating Characteristics (ROC) curve. The proposed CNN has exceeded the performance of DenseNet in classifier accuracy by 0.48% and has lesser system loss function by 1.47%. VGG16 has performed best in these three with classifier accuracy, loss function and ROC as 87.41%, 29.64% and 0.96 respectively.