Meesho's logistics arm Valmo handles 50% of orders, doubling from last year

More than half of IPO-bound e-commerce platform Meesho’s orders are now being fulfilled via its in-house logistics platform Valmo, up from around 22 per cent a year ago, the company said in its annual report for 2023-24.

 

In just one year, the company’s logistics arm has expanded to approximately 15,000 pin codes, supported by 6,000 logistics partners and creating 85,000 jobs as of December 2024.

 

“Valmo has significantly enhanced efficiency while fostering local entrepreneurship, creating thousands of jobs, and driving sustainable growth in the logistics sector,” said the company in the report. “Valmo is transforming India’s e-commerce logistics ecosystem by building a seamless, efficient, and cost-effective network that empowers local entrepreneurs.”

 

 

As of December 2024, Meesho had about 187 million unique annual transacting users (ATUs), meaning 13 per cent of India has made a purchase through the platform. Total orders placed grew to about 1.3 billion between April and December 2024, reflecting the increasing frequency and diversity of purchases, with more people turning to Meesho for a wide range of their daily needs. This trend has driven impressive growth across categories like home and kitchen, beauty and personal care, and kids and baby care. As a result, Meesho continued to be India’s most downloaded shopping app for four consecutive years, underscoring the platform’s growing appeal and reach.

 

With zero per cent commission, intuitive tools, and smart discovery features, Meesho said it makes online selling simple—even for first-time digital entrepreneurs. Today, the company said over 400,000 annual transacting sellers, from large manufacturers to small businesses, thrive on the platform—unlocking scale, affordability, and opportunity.

 

During FY24, Meesho reported a 33 per cent jump in operating revenue to Rs 7,615 crore.

 

It became the first horizontal Indian e-commerce company to achieve profitability in FY24 and the first to generate positive free cash flow of Rs 197 crore for the full year. This success was fuelled by efficiencies across multiple areas, including logistics, as well as the strategic use of generative AI and machine learning to enhance product discovery, improve the in-app experience, and provide round-the-clock customer support. Meesho’s selling, general, and administrative (SG&A) expenses as a percentage of revenue declined significantly, supported by strong consumer awareness, organic traction, and the inherent operating leverage of a marketplace e-commerce model. As a result, adjusted losses narrowed by 97 per cent from Rs 1,569 crore to just Rs 53 crore, excluding employee share-based compensation expense.

 

Artificial intelligence

 

AI powers Meesho’s seamless, intuitive, and inclusive shopping experiences, driving real-time personalisation through a robust ranking system that curates unique experiences for users. Large language models (LLMs) enhance search by decoding vernacular expressions, correcting errors, and refining queries for precise results. GenAI-driven customer support, available in six Indian languages, resolves about 90 per cent of queries at one-fifth the cost while improving customer effort score (CES) and customer satisfaction (CSAT). On the logistics front, the GeoIndia model converts unstructured addresses into precise geolocations, outperforming industry benchmarks in rural regions. To maintain platform integrity, Meesho’s AI-first fraud detection system, powered by generative AI and advanced architectures like graph neural networks, ensures stringent quality checks, predicts return to origin (RTO), and detects fraud in real time.