Meesho Takes Control of 53% of Its Deliveries in Logistics Push

Indian e-commerce platform Meesho now handles 53%of its shipments through its in-house logistics network, Valmo, just a year after launching the platform.

The Bengaluru-headquartered startup processes about 5 million orders daily and has built a delivery operation that is facilitating 217 million quarterly shipments, the firm's management said at a recent UBS conference.

Meesho employs 72,000 delivery agents across 15,000 pin codes. The company claims it is 10% more efficient in delivery costs compared to competitors.

The expansion of its logistics capabilities comes as Meesho cuts its reliance on other partners, including Delhivery. Meesho said reached 187 million annual transacting users and achieved positive cash flow in the second quarter of fiscal year 2024.

The e-commerce company has built its growth on aggressive pricing, with 75% of its products priced 30% below competitors, it told UBS. This strategy has helped attract 479,000 annual transacting sellers, with 40% of them new to e-commerce.

Meesho's user base is predominantly from India's smaller cities, with 85% coming from tier-2 cities and below. Women make up 65% of users, with an average age of 29.

The platform, which operates a horizontal marketplace excluding groceries and electronics, plans to explore new businesses including brands, content commerce and financial services while maintaining focus on operational efficiency.