Meesho ventures into logistics with Valmo to provide low-cost supply chain solutions

SoftBank-backed ecommerce startup Meesho has entered the logistics industry through supply chain service Valmo, aiming to provide low-cost solutions to micro-enterprises.

Meesho looks to create a logistics marketplace to make demand accessible to local players by removing barriers to entry. Valmo’s disaggregated network will help maintain low costs per shipment even with volatile demand patterns, said the company.

Meesho’s entry into logistics is expected to lower the cost of running business for its portfolio of over 1.1 million ecommerce sellers and bring down the cost of shipment by 5-7% compared to other major players, said Sourabh Pandey, CXO of Fulfilment and Experience at Meesho.

Pandey added that Meesho's technology capabilities, along with a well-defined network of sorting centres, will help keep costs down and create efficiencies in the supply chain.

Meesho has been building its logistics platform and onboarding clients for the last one year. So far, the platform has onboarded nearly 3,000 local and regional entrepreneurs across 6,000 pin codes in 20 states. The firm manages more than 9 lakh shipments per day, generating indirect jobs for nearly 35,000 people in the last one year, said the company.

Valmo was built on the idea that the sector is growing fast and holds immense potential to expand local and regional capacity, Pandey told YourStory.

India’s logistics sector, which is largely unorganised, is poised to touch $330 billion by 2025, according to Redseer Strategy Consultants.

A few firms, including Delhivery, Ecom Express, and Shiprocket, dominate the third-party logistics space, and the entry of new players could help streamline the supply chain and keep costs in control, according to Meesho.

The Vidit Aatrey-led ecommerce firm has built disaggregated network nodes, including first-mile, last-mile, and sorting centres across the country, allowing delivery partners to be located close to users and thus reduce the time taken for each delivery.

Meesho has partnered with ElasticRun, FarEye, Loadshare, and Shipsy to build Valmo’s technology stack.

“The thought process behind Valmo’s branding is to convey to the end users how they can gain value from every movement,” said Pandey, noting that Meesho’s name was kept out of the Valmo branding to prevent the former from losing its platform-focused identity.

Through Valmo, Meesho aims to democratise logistics in India and optimise operational processes.

"We wanted to create an efficient, cost-effective logistics ecosystem that empowers local players and contributes to job creation. This initiative underscores our steadfast commitment to furthering digitisation and fostering inclusivity in India’s logistics industry,” noted Pandey.

(The story was updated to correct Valmo's operation.)