India’s supply chain system has long been in need of a revamp, with its fragmented logistics sector and outdated operations posing challenges for the rapidly expanding e-commerce industry. In a bid to address these issues, Meesho, backed by Prosus Ventures, Fidelity, SoftBank, and Peak XV, has launched a groundbreaking network called Valmo (short for value movement).
Key Takeaway
Meesho’s Valmo network is revolutionizing India’s supply chain by empowering micro-entrepreneurs, disrupting traditional logistics, and expanding its reach to optimize the delivery process and lower costs.
Empowering Micro-Entrepreneurs
Meesho’s Valmo network aims to harness the potential of micro-entrepreneurs to optimize the delivery process. By bringing together logistics platforms, technology partners, and small entrepreneurs operating sorting centers, the network seeks to leverage their strong understanding of local communities and latent capacity to take on additional work. This approach allows delivery partners to be located closer to users, reducing delivery times and offering full visibility into a parcel’s journey, thereby enhancing the customer experience.
Disrupting Traditional Logistics
Meesho’s approach defies the traditional logistics model by creating a plug-and-play network that can add capacity on demand, ultimately leading to a lower cost operating model. By tapping into the underutilized bandwidth, Valmo benefits both buyers and sellers by lowering delivery costs and generating more demand for delivery players.
Expanding Reach and Impact
Having piloted the project last year, Meesho’s Valmo network is now operational in 20 states in India, facilitating over 800,000 orders a day. While currently used by sellers to process Meesho orders, the network is poised to significantly expand its reach and impact in the country’s supply chain ecosystem.