No Plan To Roll Out Logistics As Business Under Valmo, Says Meesho CEO

Meesho has made it clear that it has no plans to spin off or externalise Valmo, its in-house logistics network, even as it prepares to become the first new-age horizontal ecommerce marketplace to list on Indian stock exchanges.

Chairman, Managing Director and CEO Vidit Aatrey said Valmo remains a core strategic asset, one built deliberately to create the lowest-cost ecommerce logistics ecosystem in the country.

With India still operating at one of the lowest ecommerce penetration levels globally, Aatrey argued that high logistics costs have long been a limiting factor. Valmo, he told NDTV Profit, is central to Meesho’s mission of making online commerce more affordable and accessible.

Aatrey further explained that Valmo remains entirely built in-house and has scaled into one of the largest ecommerce logistics platforms in India. Its contribution to lowering delivery costs and enabling efficient fulfilment has strengthened Meesho’s unit economics and improved customer affordability.

Meesho does not expect any significant capex needs going forward, he explained. While the company will continue investing to bring the next few hundred million Indians online, the broader model will stay asset-light, leveraging logistics and advertising to enhance contribution margins.

Over the past two years, lifetime value has improved, customer acquisition costs have come down, and payback periods have strengthened, factors Aatrey believes make this the right time to accelerate customer acquisition in a disciplined manner.

Aatrey emphasised that the company has consistently innovated to broaden its value proposition for both sellers and customers. Content commerce has emerged as a powerful growth driver, enabling influencers to monetise their reach while helping small sellers improve visibility and sales.

Over the past 12 months, nearly 50,000 influencers have earned consistent income through the platform, contributing to Rs 1,200 crore in NMV. For many sellers, this marks the first time they have been able to directly collaborate with influencers, a capability that was traditionally limited to large brands. Meesho is now investing further in emerging categories, content formats and financial services to strengthen engagement and monetisation.

The company, which has built its identity around democratising commerce, has expanded rapidly over the past decade. Monthly transacting user growth stands at 44%, while orders have risen 50% year on year. More than 23 crore customers have shopped at least once on the platform, placing over 230 crore orders.

Categories such as home and kitchen, which once contributed 10% of the business, now account for around 20%, reflecting expanded adoption among frequent-purchase users.

Chief Financial Officer Dhiresh Bansal said Meesho’s approach to its IPO has been guided by the board’s framework of attracting high-quality, long-term investors. The company has maintained this philosophy across private market rounds and now expects strong interest from both domestic and global investors.

He noted that market sentiment remains supportive and investors eager to evaluate India’s first horizontal ecommerce listing. Meesho continues to be the fastest-growing large-scale horizontal ecommerce company and remains free-cash-flow positive, generating Rs 1,000 crore in free cash flow last year and around Rs 600 crore excluding interest income.

Most long-term investors, Bansal said, are assessing the business on a five-year horizon rather than short-term trading activity.

Bansal added that all US-related restructuring processes have been completed and the company does not expect any further developments on that front. With its shift completed, Meesho is now focused on scaling efficiently, maintaining strong capital discipline and driving profitable growth.