Meesho develops a logistics SaaS platform to expand its network

• ByStartupStory     |    August 30, 2022

According to people familiar with the situation, e-commerce business Meesho is developing a logistics-focused enterprise software solution that can be utilized by small and medium-sized industrial participants. While the product is still being developed internally, Meesho’s reliance on significant third-party logistics firms such as Ecom Express, Xpressbees, and Delhivery will be reduced over time.

Meesho can collaborate more closely with local and regional players who may not always have access to software solutions to handle high volumes of e-commerce deliveries. While the software solution would be available to Meesho’s existing delivery partners, it would essentially expand the Bengaluru-based e-commerce firm’s logistics network.

A source close to the situation said that “getting this product up and operating is one of the company’s primary aims this year.” According to one of the people described above, “it will address a lot of inefficiencies that exist in the tier-2 and tier-3 supply chains in terms of e-commerce delivery.” Meesho has tasked former Myntra CEO Sourabh Pandey, who presently oversees Meesho’s fulfillment and experience, with developing the product. Meesho’s representative verified the development.

At the moment, end-to-end logistical capabilities have been developed by a few industry players, and many small logistics organizations and individuals are unable to engage in the ecosystem. In line with our vision of empowering 100 million small businesses to succeed online, we are developing a platform that will provide them with the operational know-how, network design capabilities, and access to tools and technology to become a part of this network, the company said in a statement. 

It stated that this would complement the skills developed by 3Ps (third-party logistics firms) and would also help bring new participants into the bigger e-commerce logistics ecosystem. Platforms such as Delhivery, Shiprocket, and others provide their customers with a variety of software solutions for e-commerce delivery, including direct-to-consumer brands and e-commerce merchants. Meesho now relies entirely on third-party logistics providers such as Delhivery, Xpressbees, and Ecom Express to fulfill its deliveries.

The corporation is attempting to minimize costs and extend its runway by settling for a slower rate of growth. It implemented new seller policies targeted at lowering returns. As previously stated, Meesho has one of the highest return rates in the industry, which is a significant cost center for the company. Its “unbundling” project aims to reduce costs.

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