Meesho launches logistics vertical Valmo
Meesho has partnered with over 3,000 local entrepreneurs and created more than 30,000 jobs in 20+ states
E-commerce firm Meesho formally launched a logistics vertical - Valmo (VALue+Movement) - to provide shipment facilities to sellers.
"VALMO will redefine India’s supply chain by leveraging our strong technology capabilities and tapping into a vast logistics entrepreneur network to deliver shipments at the lowest cost. So far, we have partnered with over 3,000 local entrepreneurs, created more than 30,000 jobs, and expanded our reach to cover over ~6,000 pin codes in 20+ states," says Meesho in its LinkedIn post.
Meesho is betting on micro-entrepreneurs because they have strong understanding of local communities and have the latent capacity to take on additional work, TechCrunch reported.
"The network allows delivery partners to be located closer to users, thereby reducing the time taken for each delivery. It also offers full visibility into a parcel’s journey, maintaining an on-par experience for customers."
Meesho doesn’t see Valmo as a way to remove its reliance on current logistics players — Delhivery, Shadowfax, XpressBees, Ecom Express — and is hopeful that many of them, if not all, will participate in the new network, the report added.
While Flipkart has built e-Kart and Amazon’s ATS has large warehouses and facilities across the country, Meesho had to rely on third-party logistics players to fulfil its orders. This, despite Meesho being bigger than Amazon India in terms of sheer number of orders, according to data from consulting firm Redseer, The CapTable reported.
Meesho claims that about 20 percent of its daily orders are already being fulfilled through Valmo.
Sourabh Pandey, Head of fulfilment and experience, Meesho was quoted as saying: “What we are trying to do is get the local entrepreneurs to deliver these shipments for Meesho by providing them with a tech platform that they can get onto. They can use their local knowledge and their local capabilities to be part of a larger ecosystem. That is how we have come up with Valmo. We believe that by doing so, we will be able to build the lowest cost logistics network in India."
How Valmo works