Meesho's Valmo Surges Past Delhivery: E-commerce Logistics Power Shift Revealed!

Valmo Overtakes Delhivery in Parcel Volumes

Meesho's dedicated in-house logistics arm, Valmo, has achieved a significant milestone by surpassing Delhivery, India's largest third-party logistics provider, in quarterly parcel shipment volumes. This development marks a crucial acceleration in Meesho's strategic pivot towards internalizing its delivery operations.

Key Figures and Growth

• In the first quarter of fiscal year 2026 (Q1 FY26), Valmo processed an impressive 295.7 million shipments.
• This volume significantly exceeded the 208 million Express Parcel shipments handled by Delhivery during the same period.
• Further details from Meesho's red herring prospectus reveal that Valmo's order volume reached 399.7 million in Q2 FY26 and a substantial 695.42 million in the first half of FY26 (H1 FY26).
• A direct comparison shows Delhivery completed 246 million shipments in Q2 FY26, highlighting Valmo's continued growth trajectory.

Internalisation Strategy and Market Share

• Valmo now accounts for approximately 65 percent of Meesho's total order volume, a notable increase from its 50 percent share earlier in the year.
• Meesho co-founder and CEO Vidit Aatrey emphasized the company's ongoing investment in its logistics network to drive down costs, enhance efficiency, and pass benefits onto customers.
• This internalisation strategy is critical for Meesho's low-cost marketplace model to remain competitive and sustainable.

Impact on Third-Party Logistics (3PL)

• The expanding share of deliveries managed by Valmo means a smaller pool of orders is available to external third-party logistics (3PL) providers.
• Delhivery CEO Sahil Barua acknowledged that Valmo's growth is indeed impacting Delhivery's volume growth.
• Barua suggested a future consolidation where Meesho's volumes would be divided between Valmo and high-quality players like Delhivery.
• Analysts note that if in-house networks like Valmo begin offering their infrastructure to external sellers, it would create direct competition and pose a significant threat to independent 3PL companies.

Future Outlook

• Valmo's internal share of deliveries is projected to increase further as Meesho deepens its logistics capabilities.
• Industry estimates suggest Valmo could handle 75-80 percent of Meesho's orders in the future, leaving only about 20 percent for 3PLs.
• The long-term competitive dynamics of the logistics sector could be reshaped by whether captive networks like Valmo remain exclusive or open their services to external clients.

Impact

• This trend directly affects Delhivery by potentially reducing its order volume from Meesho, a major client.
• It signals a tightening market for independent 3PL providers in India's rapidly growing e-commerce sector.
• Investors in the logistics and e-commerce sectors will need to monitor the competitive landscape and the strategies of both in-house logistics arms and third-party providers.
• Impact Rating: 8

Difficult Terms Explained

• Valmo: Meesho's proprietary in-house logistics and delivery service.
• Delhivery: A leading Indian company that provides third-party logistics services.
• IPO-bound: A company that intends to become publicly traded by issuing shares through an Initial Public Offering.
• Red Herring Prospectus (RHP): A preliminary filing with regulatory bodies before an IPO, detailing the company's business, financials, and offering terms.
• Quarterly Order Volumes: The total number of orders processed or delivered within a three-month financial quarter.
• H1 FY26: The first half of the fiscal year 2026, typically from April 1 to September 30, 2025.
• 3PL (Third-Party Logistics): Companies that provide outsourced logistics services such as transportation, warehousing, and distribution.
• Marketplace: An online platform that facilitates transactions between multiple buyers and sellers (e.g., Meesho, Amazon).
• Incremental Growth: The additional growth experienced over a specific period.
• Captive Logistics Networks: Logistics operations owned and managed by a company primarily for its own internal needs.