Meesho’s Valmo Strategy: The Logistics Engine Powering India’s Value-Commerce Boom

Updated: November 14, 2025 13:20

Image Source : The Financial Express

Meesho , poised for its IPO, dominates India’s value-commerce segment with a low-cost, asset-light platform. Bank of America highlights how the company’s innovative logistics-first model and zero-commission approach have scaled affordable e-commerce access for millions of price-conscious consumers across India.

Meesho Limited, the rapidly growing online retail platform, has emerged as the leader in India’s value-commerce market by leveraging an asset-light, cost-efficient business model, according to Bank of America (BofA) Global Research. Serving 198.8 million annual transacting users with 1.83 billion orders placed in fiscal 2025, Meesho’s model enables expansion into Tier-II and Tier-III cities, primarily targeting price-sensitive shoppers.

Its zero-commission model on sellers drives strong merchant loyalty while revenue is generated through logistics markups and advertising tools. Proprietary logistics platform Valmo manages nearly half of all shipments, delivering low-cost order fulfillment with an average fulfillment cost declining from ₹50.45 in FY23 to ₹43.08 in FY25.

The report forecasts robust CAGR growth of over 20% for India’s e-commerce sector by 2029, driven by platforms like Meesho that blend e-commerce with logistics and data analytics. Meesho’s positive free cash flow of ₹591 crore in FY25 reflects its capital-efficient approach. The company continues to innovate by fostering prepaid order adoption and strengthening ad-tech monetization.

Meesho’s scale, deep market penetration, and technology-driven approach position it not just as an online marketplace but a logistics-tech ecosystem transforming India’s value e-commerce landscape.

Key Highlights:

Meesho leads value-commerce with 198.8 million transacting users and 1.83 billion orders in FY25.

Asset-light, zero-commission model boosts seller retention and market expansion.

Proprietary logistics platform Valmo handles 48% of shipments, enhancing delivery cost-efficiency.

Average fulfillment cost per order reduced consistently, lowest in Indian e-commerce.

Positive free cash flow of ₹591 crore in FY25 signals capital-efficient growth.

Focus on Tier-II/III cities with over 54% women users, emphasizing Bharat’s digital inclusion.

BofA projects 20%+ CAGR for India e-commerce by FY29 led by value and quick-commerce models.

Sources: Business Standard, Moneycontrol, BofA Global Research