Building India’s Affordability Flywheel - Initiate at Buy

Research evidence excerpt

Building India’s Affordability Flywheel - Initiate at Buy

Meesho Ltd (MEESHO IN)

Equity Research

June 15, 2026

Rapidly growing franchise with strong drivers

Meesho’s operating model is best understood as a three-step chain: GMV captures gross transactional demand, NMV captures realised demand,

and revenue reflects monetisation on top of that realised demand. This framework is particularly relevant given Meesho’s structurally differentiated

model—despite operating a zero-commission marketplace for sellers, it monetises through seller-facing services such as order fulfilment,

advertising, and platform solutions.

In terms of outcomes, Meesho continues to deliver one of the strongest growth trajectories within Indian e-commerce. During FY24-26, NMV

scaled to cRs420bn (cUS$4.4bn) , driven by a combination of sustained user additions and rising engagement from existing cohorts. Importantly,

unlike traditional platforms that rely on increasing ticket sizes or higher monetisation per user, Meesho’s growth is distinctly volume-led, supported

by a deliberate reduction in AOV to expand reach and drive frequency.

GMV to NMV - gross demand to realised throughput

At the top of the funnel, GMV represents the total value of orders placed, while NMV captures the value of successfully delivered orders. This

distinction is particularly important for Meesho given its focus on the mass-market segment, where cancellations, returns, and fulfilment variability

are structurally higher versus premium-led platforms.

Management has consciously shifted focus towards NMV as the key metric, as it better represents realised demand. The consistent growth in

NMV indicates that not only is platform demand scaling, but conversion quality and fulfilment outcomes are improving simultaneously. This is