Meesho is redesigning its seller ecosystem as its marketplace expands beyond experienced online merchants to a much larger pool of small businesses that may know how to make or source a product but have little experience selling online, chief business officer Milan Partani told Mint.
The shift comes as Meesho’s seller base crosses 1 million. Annual transacting sellers rose 87% year-on-year to 961,000 in fiscal year 2026 (FY26), from 515,000 a year earlier, according to its FY26 annual report. In the June quarter (Q1FY27), the base reached 1.04 million, up 81% from a year earlier, Partani said.
The tools include artificial intelligence (AI)-powered image processing that can extract product attributes, classify listings and help sellers create catalogues, alongside automation for product discovery and demand intelligence. Meesho said these seller-focused product changes helped drive the increase in annual transacting sellers.
The expansion is feeding into Meesho’s growth. Consolidated net loss narrowed to ₹132 crore in Q1FY27 from ₹290 crore a year earlier, while revenue from operations rose 48% to ₹3,713 crore. Net merchandise value (NMV) increased 34% to ₹11,614 crore.
“Q1FY27 results reinforce our constructive medium-term view on Meesho, with user-led scale-up and continued expansion of the seller ecosystem driving strong underlying growth,” brokerage firm Choice Institutional Equities said in a note dated 24 July.
The redesign has not eliminated every friction point. Karan Jain, founder of Bengaluru-based sarees seller Mohan's, said Meesho’s dashboard is easier to use than those of some competing platforms, but advertising remains difficult to navigate.
“Meesho is easier for me to use than some of the other platforms because the dashboard is simpler and easier to understand. I’m still trying to figure out the advertising side, though. I don’t always understand how to use the different ad options or what gives me the best returns,” Jain told Mint.
Moving up the value chain
Meesho is also trying to move sellers beyond unbranded goods through Meesho Mall, its separate section for slightly premium products offered by established names such as Hindustan Unilever Ltd and Philips.
Partani said sellers that previously operated in the unbranded segment are upgrading product quality and packaging in response to demand on Meesho Mall, with some going on to build direct-to-consumer brands.
“When you look closely at what Mall is unlocking, it’s a large base of sellers who were previously in non-branded categories. With the demand they see on Meesho, they’re upgrading their products and packaging, and many are now trying to build D2C brands of their own,” Partani noted.
The opportunity is particularly relevant in FMCG, grocery, personal care, footwear and innerwear, where Partani said “users find value in brands”.
Mall crossed 1,200 brands in Q1 FY27, while Mall transacting consumers grew 88% year-on-year and Mall NMV rose about 93%, according to the company’s Q1 FY27 disclosures. That compares with 34% growth in overall NMV.
But Meesho does not see Mall as a move away from its value proposition. Partani said consumers in smaller towns already buy brands, but often in smaller packs and at price points suited to their budgets.
“We are not serving a different consumer or a different need. We are serving our existing consumer and adding a need that we weren’t serving before. So it’s an addition, not a replacement,” according to Partani.
Taking the model to grocery
Meesho is now extending that strategy into grocery, where it wants to capture spending that its consumer marketplace does not currently reach. The company recently acquired Kirana Club, which Partani described as a “natural extension” of Meesho’s retail ambitions.
Meesho plans to combine Kirana Club’s network of small retailers with its own seller base. Partani said the two businesses could have “mutual synergy”, with Kirana Club gaining access to national grocery sellers, such as MTR and Vimal on Meesho, while Meesho gains access to Kirana Club’s local availability and brands including regional names like Namah Organics and Tasty.
The strategy puts Meesho at odds with quick-commerce economics. The company is not keen on chasing five-minute delivery in smaller towns, where it does not see speed as the primary purchase driver.
“It’s still not speed versus price for the consumer in tier 2-plus areas,” he said. “It’s still price with utility.”
“We also view initiatives such as Meesho Mall and the company’s long-term plans to expand into the grocery segment as important long-term growth drivers, expanding Meesho's total addressable market (TAM) and creating incremental opportunities for user engagement and advertising monetization,” Choice Institutional Equities’ July note added.