How Does Meesho Make Revenue of 9000 Crore By Selling Goods at 0% Commission?

At first glance, Meesho’s business model looks broken.

How do you sell a ₹450 cardigan, charge sellers zero commission, offer aggressive discounts to buyers, and still build a company that processes nearly 183 crore orders in a single year?

The answer becomes clear once you understand one thing. Meesho is a logistics and advertising engine disguised as a marketplace.

The first move was counter-intuitive but brilliant. By charging 0% commission, Meesho removed the biggest problem for India’s small sellers. Overnight, millions of micro-entrepreneurs joined the platform.

In FY25 alone, Meesho processed around 183 crore orders. At that point, the economics shift. When you control that many shipments, you do not need to make money on the product. You make money on the movement of the product. This is where Meesho’s real innovation comes in. Most people think Meesho depends on traditional logistics companies. In reality, its secret weapon is Valmo, an asset-light logistics platform built specifically for scale. Valmo does not own trucks or warehouses. Instead, it operates like an Uber for logistics.

India’s logistics market is deeply fragmented, filled with thousands of local courier operators hungry for volume. Meesho brought them onto a single platform and let them compete for delivery jobs. Each shipment triggers a bidding process. The result is brutal efficiency. Margins for logistics partners are squeezed, but delivery costs for Meesho keep falling.

The scale is staggering. Over 102,000 agents and 18,000 active logistics providers are part of this ecosystem. By breaking the traditional logistics chain and introducing competition at every step, Meesho forced efficiency across the network. The results speak for themselves. Meesho now fulfills about 62% of its own orders, compared to just 2% a few years ago. Cost per shipment has dropped from ₹66 to ₹52. Deliveries are estimated to be nearly 30% cheaper than some of India’s largest logistics companies.

Most of this cost is passed on to sellers. Meesho earns roughly ₹40 per order from logistics alone. Multiply that by 183 crore orders, and the picture becomes very clear. Meesho understood a fundamental truth about the Indian market. Products are replaceable. Sellers

are replaceable. Even platforms are replaceable. Distribution is not.