Meesho Leads India’s Value-Commerce Surge as Fulfilment Costs Drop, Cash Flow Turns Positive

E-commerce platform Meesho is leading India’s value-commerce wave, driven by a cost-efficient, asset-light platform that has helped the company widen access to price-sensitive customers across India, Bank of America Global Research’s Asia-Pacific internet report says.

The research highlights Meesho’s rapid scale, falling fulfillment costs and an improving cash-flow profile ahead of its planned public listing.

BofA’s report places Meesho alongside international value commerce peers such as PDD and Shopee, saying these platforms succeed by minimising capital intensity, using real-time signals to curate low-price assortments and encouraging merchant competition to keep prices down.

Meesho, the report notes, has become India’s largest e-commerce platform by annual transacting users and placed orders in Fiscal 2025, a scale that underpins its low-cost operating model.

Users, Orders & Unit Economics

Meesho’s regulatory filings show roughly 198–199 million annual transacting users and about 1.8 billion placed orders in Fiscal 2025. Those volumes have helped lower average fulfilment cost per shipped order to about ₹43.08 in FY25 (from higher levels in prior years), while average order value (AOV) has declined as the platform leans into low-price volume.

The combination of rising order frequency and lower per-order cost is central to Meesho’s value-commerce thesis.

Meesho’s updated draft prospectus and related filings show a material swing in free cash flow: the company reports last-twelve-months free cash flow moved from a negative roughly ₹2,336 crore to a positive ₹1,032 crore (including interest income) in FY25, a key data point investors will use to judge sustainability as Meesho approaches the market.

The company has filed updated draft IPO documents with SEBI and market reports say the offering will include a fresh issue and is targeting a sizeable public raise as it transitions to a listed company.

How Meesho Keeps Costs Low?

A core part of Meesho’s playbook is keeping logistics and fulfillment costs down. The company’s in-house logistics initiative and technology platform (referred to as Valmo in disclosures and industry reporting) plus aggressive bargaining with third-party logistics partners have helped compress per-order fulfilment costs and ad-spend per delivered order, sharpening margins and supporting the cash-flow improvement highlighted by BofA.