New Delhi: Meesho is leveraging micro-entrepreneurs to address deficiencies in India’s supply chain network. Despite India’s rapid economic growth, its logistics infrastructure remains outdated, with small regional operators lacking efficiency. Meesho, supported by investors like Prosus Ventures, Fidelity, SoftBank, and Peak XV, aims to bridge these gaps.
The startup, headquartered in Bengaluru, recently introduced Valmo, a network designed to optimize the delivery process by bringing together logistics platforms, technology partners, and small entrepreneurs running sorting centers. Meesho’s strategy revolves around tapping into the expertise and local insights of micro-entrepreneurs, who possess a deep understanding of their communities and the capacity to handle additional work.
Valmo enables delivery partners to be located closer to customers, reducing delivery times and providing full visibility into parcel journeys, ensuring a seamless experience. Meesho aims to increase the involvement of smaller players in e-commerce deliveries from the current 20% to 45% through this network.
Contrary to traditional logistics models, which focus on filling large boxes to reduce costs, Meesho advocates for a more flexible, plug-and-play approach. This approach allows for capacity expansion on demand and is expected to result in a lower operating cost. Valmo benefits all participants in the ecosystem: micro-entrepreneurs find more opportunities, delivery players experience increased demand, and the lower delivery costs benefit both buyers and sellers.
The project underwent piloting last year and is now operational in 20 Indian states, facilitating over 800,000 orders daily, albeit currently limited to processing Meesho orders. Meesho doesn’t intend to replace its existing logistics partners but hopes they will participate in the Valmo network.