NEW DELHI: Meesho on Wednesday said it is making use of its new tech-enabled logistics network Valmo (VALue+MOvement) to decrease logistics cost by 4-5% and passing on benefits to its sellers.
Speaking about Valmo, Sourabh Pandey, CXO, Fulfilment & Experience at Meesho, said the logistics sector is a fast-growing market with a lot of untapped local capacity. At present, local/regional players' share is about 20% and with Valmo, he believes it can reach 45% in three years.
"We want to democratise the country's supply chain to enable deliveries at the lowest cost and Valmo now helps in managing nearly 10 lakh orders on a daily basis and expanded its reach to include 6,000 pin codes across 20 states," he said.
This 'tech enabled initiative' Valmo helps micro entrepreneurs and facilitate seamless handover of shipments, he added. At present, the ecommerce player could reduce logistics cost by 4-5% and it targets a further reduction of 5-7% in coming years.
Meesho also said that nearly 3,000 micro entrepreneurs who act as business partners ensure smooth functioning of these operations, and Valmo will benefit more micro-entrepreneurs as they have more understanding of local communities.
The ecommerce firm also said that this initiative has helped generate 35,000 indirect jobs through sustained engagement with these local partners. Meesho also continues to work with third-party logistics providers such as Delhivery, Shadowfax, Xpressbees, Ecom Express, among others.
A recent report by AllianceBernstein said that Meesho is the fastest growing e-commerce platform in the country, accounting for 48% share in total e-commerce downloads. The report said that Meesho is gaining market share primarily through its strategic focus on tier 2+ cities.
Meesho continues to be the most downloaded Shopping application in India and second globally, according to the latest Sensor Tower Report. The app witnessed about 63 million downloads from October 1 to December 31, 2023.
