Meesho’s IPO has opened for bidding today (December 3–5), with the listing scheduled on December 10 on both the Indian bourses. Even as the market is watching out the company’s market debut, a bigger question has emerged – Is Meesho quietly becoming a major challenge to Delhivery?
According to a report by Jefferies, Meesho’s fast-growing logistics strategy could emerge as a major challenge for Delhivery. The brokerage has maintained an ‘Underperform’ rating on Delhivery with a target price of Rs 390. This indicates a downside potential of nearly 9%.
Let’s take a look at what Jefferies has flagged in its report –
A new logistics model catches attention
According to the brokerage report, Meesho’s latest Draft Red Herring Prospectus reveals something unexpected. The company has been increasing the use of its own logistics network, Valmo, rather than depending fully on third-party logistics partners such as Delhivery.
Jefferies noted that “Meesho’s DRHP indicates rising insourcing through its logistics platform Valmo.”
This is significant because logistics forms the backbone of marketplaces. The brokerage house noted in its report that, “logistics costs are key for marketplaces for operational/cost reasons,” and this shift may have broader consequences.
How Valmo’s model works
Meesho currently fulfills orders in two ways. One, through large third-party logistics partners (also called 3PL, or Third-Party Logistics) like Delhivery. Secondly, through Valmo, its own integrated logistics platform.
Valmo brings together various delivery players, sorting centres, truck operators and first-mile and last-mile service providers under one umbrella.
On this platform, every order moves through a chain of multiple logistics partners. Jefferies highlighted in its report that “on Valmo, each order is fulfilled through multiple handovers between logistics providers where Valmo also introduces competition to bring down logistics cost.”
As per the brokerage report, Valmo has grown rapidly from handling just 2% of Meesho’s orders in Financial Year 2023 to 48% in Financial Year 2025. One of the most striking observations in the report is that Meesho now enjoys “1–11% lower cost per shipment on Valmo vs. 3PL.”
Jefferies report added that Meesho “passed on the efficiencies to sellers in FY25, reflected in lower cost to sellers.”
Why this matters for Delhivery
Delhivery derives nearly 60% of its Financial Year 2025 revenue from its Express Parcel business. A large part of this volume comes from e-commerce marketplaces.
Jefferies estimates that Meesho alone accounts for around 16% of Delhivery’s sales, making any shift in Meesho’s logistics strategy extremely important.
According to the brokerage report, if Meesho continues insourcing aggressively, Delhivery’s volumes in Express Parcels may come under pressure.
Jefferies also added that “a potential rise in insourcing is a risk to Delhivery’s Express Parcel business.”