Meesho expands presence in India's small-town e-commerce market

Meesho is strengthening its position in India’s value-commerce market by targeting price-conscious consumers in smaller cities. The platform reported 274 million annual unique transacting customers in the first quarter of FY27, with approximately 88% of its consumer base residing outside India’s eight largest cities.

To maintain its competitive edge against Amazon and Flipkart, Meesho utilizes an asset-light logistics model and a marketplace of over one million sellers offering largely unbranded products. The company has attracted sellers by eliminating commission charges, though competitors are increasingly adopting similar commission-free models.

Financially, Meesho reported a 68% year-on-year reduction in consolidated net loss for Q2 FY27, bringing the loss down to ₹132.5 crore. Operating revenue grew 34% year-on-year to ₹4,131.6 crore, outpacing a 24% increase in expenses. CEO Vidit Aatrey noted that Net Merchandise Value (NMV) grew 23% year-on-year to ₹12,911 crore.