Citi has initiated coverage on Meesho with a Buy rating and a target price of Rs 210, implying an upside of nearly 22% from current levels. The brokerage believes the company is well-positioned to benefit from the next phase of growth in India's e-commerce market, particularly among value-conscious consumers outside major metropolitan centres.
According to Citi, Meesho has built a differentiated business model centred on affordability, low-cost operations and deep penetration into underserved markets. Unlike several peers, the company operates a fully marketplace-based model, which reduces the cost of doing business for sellers while offering consumers access to a wide range of competitively priced products.
The brokerage described Meesho as a "value-focused e-commerce platform" with multiple strategic advantages, including its large seller base, zero-commission logistics monetisation model and increasing use of technology across the platform. Citi believes Meesho is uniquely positioned to become an "infinite and accessible store" for India's mass-market consumers.
What's Driving Growth?
Citi highlighted the company's investments in artificial intelligence and vernacular-language tools to improve product discovery, seller productivity and customer engagement. The brokerage believes these technology investments could strengthen Meesho's position as e-commerce adoption expands beyond urban India.
The brokerage estimates the platform's annual transaction value currently stands at about $33 billion, while the company serves a large and growing user base. It also expects Meesho's gross merchandise value to grow at a compound annual rate of around 27% between FY26 and FY29, driven by continued expansion in active buyers and higher spending per customer.
Meesho's addressable market is estimated at approximately Rs 19 trillion by FY26, driven by increasing internet penetration and rising digital commerce adoption. While the company currently derives much of its business from unbranded merchandise, successful expansion into categories such as electronics and branded goods could further expand its market opportunity.
The brokerage argues that its focus on affordability, combined with technology-led execution and a scalable marketplace model, could allow it to capture a larger share of India's rapidly evolving e-commerce landscape over the coming years.
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