Meesho Leverages AI for Seller Growth and Platform Efficiency

Indian e-commerce platform Meesho has detailed its Q1 FY27 financial results, emphasizing strategic developments in artificial intelligence (AI) to accelerate seller onboarding and enhance platform operations. The company reported an 81% year-on-year growth in transacting sellers, reaching 1.04 million, with a significant surge of 125% in Tier IV cities.

Meesho is employing AI for various functions including cataloging, demand intelligence, and generative AI voice agents to support sellers in local languages. The platform is also using Vision Language Models (VLMs) to identify and prevent counterfeit products, addressing past concerns. The company stated that AI is integrated across all business segments, including consumer-facing services and software development.

In its internal logistics arm, Valmo, the share of shipments handled remained steady at 50% for the third consecutive quarter. This plateau comes despite Valmo's rapid scale-up since its inception aimed at reducing costs. While Valmo was introduced to decrease shipping expenses, its growth in handling Meesho's total orders has not surpassed the 50% mark, unlike competitors such as Amazon and Flipkart who manage a higher percentage of their logistics internally.

The company is also focused on its Meesho Mall segment, which features branded products. Although specific financial figures were not disclosed, Meesho Mall saw a 93% year-on-year growth in Net Merchandise Value (NMV) and an 88% rise in transacting consumers. Management views Meesho Mall as a significant driver for future growth, planning to expand product offerings and accessibility for consumers.