Meesho Leverages AI and Business Growth for User Expansion and Profitability

Backed by SoftBank, Indian e-commerce platform Meesho is prioritizing artificial intelligence along with new business avenues to widen its customer base and enhance profitability. CEO Vidit Aatrey shared with Reuters the firm’s unwavering commitment to growth within the competitive landscape of India’s online retail sector.

As it gears up for its initial public offering (IPO), Meesho targets a valuation of approximately $5.6 billion. The three-day offering is set to commence on December 3, with shares anticipated to list on the primary stock exchanges of India by December 10. Proceeds from the IPO will enable Meesho to bolster its investments in technology, marketing, and logistics.

With its unique focus on low-priced offerings and zero commission for sellers, Meesho has carved out a significant niche. According to CEO Aatrey, this strategy remains vital as the company aims to attract sellers and small businesses, particularly in smaller towns and rural sectors where a growing number of shoppers are exploring online avenues.

Plans are underway to introduce chat and voice-based AI agents intended to ease the shopping experience for first-time users, especially in rural areas. These AI innovations will streamline tasks such as searching for products, placing orders, and handling payments, ultimately enhancing the consumer experience.

Furthermore, Meesho is actively upgrading its logistics framework, Valmo, to minimize delivery expenses and expedite shipping processes. Enhancements in logistics are deemed crucial for the sustainable expansion of the business, allowing the company to cater to a broader audience without escalating costs.

In addition to tech advancements, Meesho plans to integrate financial services, including buy-now-pay-later offerings for customers and short-term credit for sellers. CEO Aatrey emphasized that these financial solutions could present long-term opportunities to enhance profit margins, mirroring strategies employed by international e-commerce leaders.

Meesho is also eyeing entry into the grocery segment, a fiercely competitive domain within Indian e-commerce. This expansion is anticipated to augment market share and deliver added value to consumers, thus driving overall growth.

In the first half of fiscal 2026, Meesho witnessed a revenue uptick of 29.4%, reaching 55.78 billion rupees ($622.96 million), while its losses diminished by 72.1%, standing at 7 billion rupees. These financial outcomes signify that Meesho’s strategy leveraging AI, logistics, and financial solutions is on the right track towards achieving profitability.

With the impending IPO and consistent investments in technological, logistical, and financial services, Meesho aspires to amplify its user base, which increased by 30% in the year ending September 30. By diversifying its product range, enhancing delivery services, and incorporating financial tools, Meesho is positioning itself as a leading contender in India’s expanding e-commerce market.