Meesho reaches GMV of $6.2 bn, eyes bigger slice of e-commerce pie with value-first playbook: Report

E-commerce major Meesho has reached a Gross Merchandise Value (GMV) run rate of $6.2 billion for FY25 and commanding a 37 per cent share of India’s ecommerce order volume, according to a report by brokerage firm CLSA.

With 4.9 million daily orders and 180 million monthly active users (MAUs), the platform now leads in order volume and user engagement metrics, even as it trails Flipkart and Amazon in GMV due to its low average order value (AOV) of ₹315–₹350.

CLSA expects Meesho to expand its share of India’s e-commerce market from the current 8.5 percent to 10 percent over the next six years, riding on strong traction in Tier 2 and 3 cities, a capital-light model, and a sharp focus on affordability.

The report pegs Meesho’s GMV and revenue to grow at a 26 per cent compound annual growth rate (CAGR) over the next six years, driven by deepening ecommerce penetration in non-metro markets. The platform’s market share in ecommerce GMV stood at 8.5 per cent in FY24 and is expected to cross 10 per cent by FY30.

What sets Meesho apart is its zero-commission marketplace model, which relies on monetising logistics and ad revenues. Logistics arm Valmo optimises fulfilment costs—currently at ₹60–65 per order—through an asset-light bidding model across delivery legs. This structure enables Meesho to maintain a contribution margin of ₹17–20 per order without passing higher costs to customers.

The platform’s fashion-led assortment is shifting gradually, with growing contributions from categories such as home décor, kitchenware, and personal care. While 63 per cent of orders came from apparel in 3QFY21, that share fell to 35 per cent in 3QFY25, reflecting category diversification.

Notably, Meesho has been cash flow positive for five consecutive quarters, generating approximately $118 million between 2QFY24 and 2QFY25.

The report underlines that Meesho’s success mirrors the global rise of value-led platforms like Pinduoduo, Shopee, and MercadoLibre, all of which have outpaced traditional ecommerce models in both GMV and revenue growth.

As ecommerce penetration in India remains at just 9 per cent of total retail—compared to 41 per cent in the US and 53 per cent in China—analysts see ample headroom for value-driven platforms like Meesho to expand further.

Published on April 25, 2025