Meesho reduces logistics cost by 5% through software infra platform Valmo

E-commerce firm Meesho on Wednesday said it has reduced its logistics cost by 5 per cent by using its software logistics infrastructure platform Valmo.

Valmo currently handles 20-22 per cent of orders of Meesho, which it plans to double in the next 12-18 months.

The homegrown company announced that it has created a technology-enabled SaaS (Software as a service) platform Valmo to get micro-entrepreneurs in the logistics segment onboard to create a larger ecosystem and supply chain.

The platform will incorporate local logistics suppliers to provide shipment services to the company, making the logistics seamless, and helping sellers on Meesho to save on operating costs.

"Valmo aims to create a national logistics solution by eliminating entry barriers for local players and helping them grow their businesses," Meesho said in a statement.

Meesho CXO, Fulfilment & Experience, Sourabh Pandey said the company has been able to reduce overhead costs by 5 per cent by incorporating Valmo for its logistics and targets a further reduction of 5-7 per cent in the coming 12-18 months.

"Valmo handles about 20-22 per cent of logistics in order terms for Meesho, and we hope to double it in the coming months.

"We wanted to create an efficient, cost-effective logistics ecosystem that empowers local players and contributes to job creation. This initiative underscores our steadfast commitment to furthering digitisation and fostering inclusivity in India's logistics industry," Pandey said.

Valmo also aligns seamlessly with the National Logistics Policy, contributing to a reduction in logistics costs while optimising supply chains and creating jobs, he added.

Strong visibility and stricter operating guardrails, which help create trust between sellers and logistics providers, differentiate Valmo from other players in the market, the company said.

The company said it has enabled more than 3,000 local and regional logistics entrepreneurs to expand their businesses through Valmo, which started operating about a year ago.

Valmo helps manage more than 9 lakh orders daily, with nearly 3,000 micro-entrepreneurs ensuring the smooth functioning of operations. This initiative has helped generate 35,000 indirect jobs through sustained engagement with these local partners, it added.

However, "Meesho continues to work with leading third-party logistics providers like Delhivery, Shadowfax, Xpressbees, and Ecom Express, among others," the company added.

"Valmo is not developed to compete with existing players, but as a collaborative step. Our existing logistics partners have welcomed Valmo, and are excited by the prospects."

Meesho said it is also experimenting with a similar setup for grocery products as well.