Shares of Meesho could remain in focus after global brokerage Jefferies initiated coverage on the e-commerce platform with a ‘Buy’ rating and a target price of ₹225 per share, implying a potential upside of about 34% from the reference price of ₹167.95.
In its initiation report titled “Building India’s Affordability Flywheel”, Jefferies said Meesho is building a scale-led value commerce platform centered around affordability, product discovery and logistics efficiency. The brokerage believes the company’s growing user base and deep network of MSME sellers are creating a strong ecosystem that can support long-term growth.
According to Jefferies, Meesho has carved out a unique position in India’s e-commerce market by targeting price-sensitive consumers, particularly in non-metro markets. Unlike traditional search-led marketplaces that focus on higher average order value customers, Meesho follows a discovery-led and assortment-rich model with a structurally lower-cost approach.
The brokerage highlighted that Meesho’s four-sided ecosystem comprising users, sellers, logistics partners and content creators creates a self-reinforcing growth cycle. Higher order density improves assortment and pricing while logistics optimisation helps lower fulfilment costs, supporting continued scale expansion.
Jefferies estimates that Meesho currently serves around 264 million annual transacting users and has facilitated more than 2.5 billion orders, making it one of the largest consumer internet platforms in India.
A key pillar of the investment thesis is Meesho’s asset-light logistics strategy. The company combines its captive logistics platform, Valmo, with third-party partners, helping maintain cost competitiveness while improving delivery efficiency. Jefferies noted that the platform’s zero seller commission framework has also encouraged rapid onboarding of merchants, including many first-time online sellers.
Technology and artificial intelligence remain central to the company’s strategy. The brokerage pointed to initiatives such as the PRISM recommendation engine, Vaani voice AI and GeoIndia location intelligence platform, which are aimed at improving customer engagement, conversion rates and logistics efficiency.
On monetisation, Jefferies expects Meesho to continue focusing on services-led revenue streams rather than commissions. Revenue is increasingly being driven by fulfilment services, advertising and seller tools, while newer initiatives such as content commerce and Meesho Mall could provide additional growth avenues.
Financially, Jefferies expects Meesho to deliver around 25% CAGR growth across GMV, NMV and revenues between FY26 and FY30. The brokerage forecasts adjusted EBITDA margins of about 3% by FY30, with the potential to expand further over the longer term.
The report also noted that Meesho operates with negative working capital, carries no inventory or receivables on its balance sheet and is expected to become free cash flow positive by FY28 while maintaining a net cash position.
Jefferies said value-focused commerce platforms with strong ecosystem control often build durable competitive advantages. While acknowledging risks such as logistics disruptions, regulatory changes and macroeconomic headwinds, the brokerage believes Meesho’s affordability-led model positions it well to capture the next phase of growth in India’s e-commerce market.
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