The Meesho Business Model of Zero Commission Selling
How Meesho earns from seller services without charging commission
Key Takeaways
- Meesho charges sellers no commission and consumers no platform fee.
- It earns from seller services such as fulfilment, returns, advertising and content.
- FY26 revenue from operations was ₹12,626 crore, up 34.5% from ₹9,390 crore.
- FY26 net loss was ₹1,357.7 crore against ₹3,941.7 crore in FY25.
- Meesho had 264 million annual transacting users and 2,668 million placed orders in FY26.
The Meesho business model is an online marketplace that charges sellers no commission and consumers no platform fee, and earns from services it sells to sellers. In FY26 Meesho reported revenue from operations of ₹12,626 crore and a net loss of ₹1,357.7 crore.
Meesho listed on the NSE and BSE in December 2025.
Meesho at a glance
| Item | Detail |
|---|---|
| What it does | Online marketplace linking sellers, consumers, logistics partners and content creators |
| Founded | 2015 |
| Founders | Vidit Aatrey and Sanjeev Barnwal |
| FY26 revenue from operations | ₹12,626 crore |
| FY26 net loss | ₹1,357.7 crore |
| FY26 annual transacting users | 264 million |
| FY26 placed orders | 2,668 million |
| IPO | ₹5,421 crore issue in December 2025, valued at ₹50,096 crore at the upper price band of ₹111 |
| Listing | NSE and BSE |
What Meesho does
Meesho connects four groups on one platform: consumers, sellers, logistics partners and content creators. In FY26 it had 264 million annual transacting users, 961k active sellers and over 18k logistics partners.
Meesho says it charges sellers no commission and charges no platform fee to consumers. Instead it charges sellers for services such as order fulfilment, returns and advertising.
How Meesho makes money from seller services
Meesho has several revenue lines, all earned from services rather than from selling goods:
- Order fulfilment fees, which cover logistics for each order.
- Return shipping fees recovered from sellers when a product comes back.
- Advertising revenue, recognised from clicks on ads shown on the platform.
- Content service fees paid by sellers who use content creators.
- A Return and RTO Assurance Program for sellers.
- A share of the interest that non-banking finance companies earn on loans to sellers on the platform.
Meesho reports all of this revenue as one line, sale of services. Of FY26 revenue, the Marketplace segment brought ₹12,614 crore and New Initiatives ₹12 crore. This is how Meesho makes money without a seller commission.
Meesho revenue and net loss
Revenue from operations rose 34.5% from ₹9,390 crore in FY25 to ₹12,626 crore in FY26. The net loss was ₹1,357.7 crore in FY26 against ₹3,941.7 crore in FY25. Meesho also earned ₹472.7 crore of other income in FY26.
In the quarter ended June 2026 (Q1 FY27) Meesho reported a net loss of ₹132.8 crore against ₹289.4 crore a year earlier, with revenue from operations up 48%.
Meesho's scale
Meesho tracks users, orders and net merchandise value (NMV), the checkout value of successfully delivered orders, including taxes and excluding cancelled, undelivered or returned orders and discounts. In FY26 NMV was ₹41,560 crore.
In Q1 FY27 NMV was ₹11,614 crore, up 34%, with 72.5 crore placed orders and 27.4 crore annual transacting users.
Meesho Business Model Canvas
Where Meesho's money goes
Total expenses were ₹14,167.2 crore in FY26. Logistics and fulfilment expense was ₹10,456.6 crore, up 42.2%, as more placed orders led to higher payments to logistics partners. Advertising and sales promotion expense was ₹1,119.6 crore, which includes payments to content creators. Employee benefits expense was ₹912.2 crore.
| FY26 cost line | Rs crore |
|---|---|
| Logistics and fulfilment | 10,456.6 |
| Advertising and sales promotion | 1,119.6 |
| Employee benefits | 912.2 |
| Total expenses | 14,167.2 |
Logistics and fulfilment cost was equal to about ₹82.8 for every ₹100 of revenue.
Meesho's journey so far
| When | What happened |
|---|---|
| 2015 | Founded by Vidit Aatrey and Sanjeev Barnwal |
| December 3 to 5, 2025 | IPO of ₹5,421 crore open for subscription |
| December 2025 | Shares list on the NSE and BSE |
| May 2026 | FY26 results with revenue of ₹12,626 crore |
| July 2026 | Q1 FY27 net loss of ₹132.8 crore |
The IPO was a fresh issue of ₹4,250 crore and an offer for sale of ₹1,171 crore.
Who Meesho competes with
Meesho's competitors in Indian online shopping include Flipkart, which owns Shopsy, and Amazon India.
Challenges Meesho reports
Meesho's last twelve months free cash flow was negative ₹633 crore in FY26. Contribution margin was 3.5% of NMV in FY26 against 4.9% in FY25, which the company links to the rapid scale-up of its Valmo network after consolidation among third-party logistics providers. Marketplace adjusted EBITDA was negative 2.8% of NMV.
Conclusion on the Meesho business model
Meesho runs an online marketplace where sellers list products without paying a commission and consumers pay no platform fee. Orders are delivered through Valmo or directly through end to end logistics partners.
Its revenue comes from services sold to sellers, such as fulfilment, returns, advertising and content. In FY26 revenue from operations was ₹12,626 crore, the net loss was ₹1,357.7 crore, and the platform had 264 million annual transacting users.
