Logistics arm Valmo fulfilled 50% of Meesho's deliveries in FY24
In the nine months ended December 2024, Meesho resulted in a positive cash flow as its in-house logistics platform Valmo and AI initiatives drive efficiencies.
Ecommerce marketplace Meesho noted in a report that its in-house logistics channel, Valmo, enhanced the platform's efficiency and handled 50% of its daily orders in April-December 2024.
The company, in its inaugural annual report, stated that the logistics platform created 85,000 jobs by partnering with 6,000 logistics partners.
Meesho saw 187 million annual transacting users placing 1.3 billion orders in the nine months ended December 2024. The Vidit Aatrey-led company generated a free cashflow of Rs 197 crore with a contribution profit of Rs 1,393 crore during the period.
The Bengaluru-based firm also said it managed to harness efficiencies through the strategic use of GenAI and machine learning to enhance product discovery and provide round-the-clock customer support.
The company claimed its adjusted losses have narrowed by 97% to Rs 1,569 crore to Rs 53 crore, excluding employee share-based compensation expenses. Its Selling, General, and Administrative (SG&A) expenses as a percentage of revenue dropped significantly, driven by strong consumer awareness and organic growth.
The platform saw strong traction in growth categories like home and kitchen, beauty and personal care, and babycare.
The company said it has seen substantial results from its AI initiatives. Its GenAI-driven customer support resolves over 90% of queries at one-fifth of the cost with enhanced effectiveness, it noted in the report. Its fraud detection and AI-powered search have also seen significant improvements.
Edited by Kanishk Singh