Bengaluru, Dec 1 (Reuters) – SoftBank-backed Indian e-commerce firm Meesho is increasingly relying on artificial intelligence (AI) and new business lines to expand its user base and accelerate its path toward profitability. CEO Vidit Aatrey, in a recent interview, highlighted the company's strategic shift.
Meesho, which has built its brand by targeting value-conscious shoppers in smaller towns and cities, is now India's largest e-commerce marketplace in terms of users and orders. As of December 2024, Meesho had approximately 187 million unique annual transacting users (ATUs), meaning about 13% of the Indian population has made a purchase through the platform. Between April and December 2024, total orders placed grew to approximately 1.3 billion, reflecting the increasing frequency and diversity of purchases.
Aatrey noted that in emerging markets, value-focused platforms eventually reach almost all internet users, as affordability resonates strongly in these regions. Meesho's transacting user base is around 230 million and continues to grow at a fast pace.
AI is playing a central role in Meesho's growth strategy. The company is using AI to enhance various aspects of its operations, including logistics, product discovery, and customer support. AI-powered systems are being implemented to personalize the shopping experience, improve search accuracy by understanding vernacular expressions, and provide efficient customer support in multiple Indian languages. Meesho's AI-first fraud detection system ensures stringent quality checks and detects fraud in real time.
In addition to AI, Meesho is exploring new business lines to further drive growth. These initiatives include low-cost logistics for essential goods and digital financial services to support users and sellers. The company is also investing in short video-based content to strengthen user engagement.
Meesho's focus on affordability and a zero-commission model has attracted a large base of sellers, with over 400,000 annual transacting sellers thriving on the platform. The company's seller ecosystem has scaled, with 706,471 annual transacting sellers as of September 2025. The average seller is also earning more, and the time to the first order has decreased, reflecting better product discovery and faster onboarding.
The company's success has come from understanding how small-town Indians shop, what they are willing to pay, and how they prefer to discover products. Nearly 90% of Meesho's orders come from Tier-2 and Tier-3 locations, making it one of the widest rural and semi-urban e-commerce footprints in the country. Women accounted for 54.22% of Meesho's customers in FY25.
Meesho is preparing for an initial public offering (IPO) to raise ₹54.2 billion ($606 million). The IPO, which is set to open on December 3, 2025, aims to accelerate the company's expansion across smaller Indian towns. The company plans to use the IPO proceeds to enhance its AI capabilities, fund acquisitions, strengthen its cloud infrastructure, and invest in marketing initiatives.
Meesho's asset-light model, which includes its logistics arm Valmo, contributes to its lean operational structure. The company collaborates with independent logistics partners rather than owning physical assets like warehouses or delivery vehicles.
As Meesho prepares to debut in the public markets, its strategic focus on AI, new business lines, and expansion into smaller towns positions it for continued growth in the rapidly evolving Indian e-commerce landscape.
