Meesho's in-house logistics arm, Valmo, now handles less than 50% of its total orders. Two quarters ago, Valmo managed over 60% of Meesho's shipments, positioned as a key competitive advantage for its IPO. The company’s scale-up to 2.7 billion orders per year pressured Valmo's asset-light model, pushing costs up.
How We Got Here
Meesho launched Valmo in 2024 to build a cost-first logistics platform, stitching together local players without owning assets. The goal was to lower shipping costs and reduce dependence on 3PLs, which Valmo briefly surpassed in volume before its recent decline.
The Numbers
- Valmo was positioned as a defining competitive advantage for Meesho’s planned IPO in late 2025.
- It grew from handling 2% of Meesho's shipments in FY23 to over 60% within a few quarters.
- CFO Dhiresh Bansal confirmed Meesho's objective is to minimize delivery costs, whether via Valmo or 3PL providers.
- Valmo's low-cost system struggled with penetrating deeper into India’s hinterlands, where it faced operational limits.
What Happens Next
🇮🇳 Why This Matters for India
For thousands of Tier-2 and Tier-3 city sellers on Meesho, this logistics shift means potential price volatility and slower delivery times if 3PL costs rise.
The Take
Valmo’s initial ambition to become the dominant in-house logistics player now looks tempered by economic reality. Expect Meesho to lean much harder into 3PL partnerships over the next 12-18 months, despite CEO Aatrey's public statements.
Source:
The Ken ↗