Meesho Focuses on AI, Business Growth to Boost Users and Profit

SoftBank-backed Indian e-commerce firm Meesho is focusing on artificial intelligence and new business lines to grow its user base and improve profitability. CEO Vidit Aatrey told Reuters that the company is determined to expand while staying competitive in India’s large online retail market.

Meesho is preparing for its initial public offering (IPO), aiming for a valuation of up to $5.6 billion. The three-day share sale will start on December 3, with shares expected to debut on India’s main stock exchanges on December 10. The IPO will help Meesho invest in technology, marketing, and logistics to strengthen its position.

Meesho has created a niche by offering low-priced products and not charging sellers any commission. CEO Vidit Aatrey said this approach will continue, as the company wants to remain attractive to sellers and small businesses, especially in smaller towns and rural areas where many new shoppers are entering online retail.

The company plans to develop chat and voice-based AI agents to make shopping easier for first-time users. This is especially targeted at buyers in rural areas who may not be familiar with online shopping. The AI tools will simplify product search, ordering, and payments to improve the customer experience.

Meesho is also expanding its logistics platform, Valmo, to reduce delivery costs and speed up shipments. The company sees logistics as a key area to grow its business efficiently. By improving delivery and supply chain processes, Meesho can serve more users while keeping costs manageable.

In addition to technology, Meesho plans to integrate financial services. This includes buy-now-pay-later options for customers and short-term credit facilities for sellers. CEO Aatrey mentioned that financial products could become a long-term opportunity to improve the company’s margins, similar to strategies used by global e-commerce giants.

Meesho is exploring entry into the grocery segment, which is one of India’s most competitive areas of e-commerce. By expanding into groceries, the company hopes to increase its market share and provide more value to customers while driving overall growth.

Meesho’s revenue grew 29.4% to 55.78 billion rupees ($622.96 million) in the first half of fiscal 2026. At the same time, its losses decreased by 72.1% to 7 billion rupees, showing that the company is moving toward profitability. These results indicate that Meesho’s strategy of combining AI, logistics, and financial services is beginning to pay off.

With its IPO and ongoing investments in technology, logistics, and financial services, Meesho aims to continue growing its transacting user base, which rose by 30% in the year ending September 30. By expanding product offerings, improving delivery, and integrating financial services, Meesho is positioning itself as a major player in India’s growing e-commerce market.