Meesho has announced that it reduced logistics costs by 5% by utilizing its software logistics infrastructure platform, Valmo. They currently handle 20-22% of Meesho orders, which it plans to double over the next 12-18 months. The homegrown company announced the launch of Valmo, a technology-enabled SaaS (Software as a Service) platform designed to bring micro-entrepreneurs in the logistics sector on board and build a larger ecosystem and supply chain. The platform will incorporate local logistics suppliers to provide shipment services to the company, making logistics more seamless and allowing Meesho sellers to save on operating costs.
“Valmo aims to create a national logistics solution by eliminating entry barriers for local players and helping them grow their businesses,” Meesho said in an e-mail. Sourabh Pandey, CXO of Meesho Fulfilment & Experience, stated that the company has been able to reduce overhead costs by 5% since incorporating Valmo for logistics, with a further reduction of 5-7% expected in the next 12-18 months. “Valmo handles approximately 20-22% of Meesho’s logistics in order terms, and we hope to double it in the coming months.
“We wanted to build an efficient, cost-effective logistics ecosystem that empowers local players and promotes job creation. This initiative demonstrates our unwavering commitment to advancing digitization and promoting inclusivity in India’s logistics industry,” Pandey stated. Valmo also complements the National Logistics Policy, helping to reduce logistics costs while optimizing supply chains and creating jobs, he added. Valmo stands out from other market players, according to the company, because of its strong visibility and stricter operating guidelines, which help to build trust between sellers and logistics providers.
According to the company, Valmo, which began operations about a year ago, has helped over 3,000 local and regional logistics entrepreneurs expand their businesses. Valmo manages over 9 lakh orders per day, with nearly 3,000 micro-entrepreneurs ensuring that operations run smoothly. This initiative has contributed to the creation of 35,000 indirect jobs through ongoing collaboration with local partners, according to the report.
Yet, “Meesho continues to work with leading third-party logistics providers like Delhivery, Shadowfax, Xpressbees, and Ecom Express, among others,” the business said in a statement. “Valmo is being developed collaboratively rather than in competition with existing players. Our existing logistics partners have welcomed Valmo and are excited about the opportunities.” Meesho stated that it is experimenting with a similar setup for grocery products.
