Over 61% of consumer queries resolved using Gen AI: Meesho
Credit: Special arrangement
Bengaluru: Bengaluru-based e-commerce company Meesho, which has fixed a price band of Rs 105 to Rs 111 per share, is all set to focus more on Artificial Intelligence (AI) and Machine Learning (ML) in order to maintain its competitive advantage and to drive sustainable growth.
The SoftBank-backed e-commerce platform’s maiden IPO will open for subscription on December 3, and it will comprise a fresh issue of shares worth Rs 4,250 crore and an Offer for Sale of up to 10.55 crore equity shares.
At its IPO press conference on Friday, Meesho Co-founder and Chairman Vidit Aatrey, and Co-founder, Whole-time director & CTO Sanjeev Kumar said 61.4% of consumer queries are resolved using Gen AI and that a portion (Rs 1,390 crore) of the net proceeds from the IPO will be invested in its subsidiary MTPL (Meesho Technologies Private Limited) to drive activities across many focus areas, including advancing AI-led innovation through Meesho AI Labs.
The company has proposed to utilise the net proceeds also towards payment of salaries (Rs 480 crore) to its existing and replacement hires for ML and AI & technology teams for AI and technology development undertaken by MTPL. The net proceeds will also be used to fund inorganic growth through acquisitions and other strategic initiatives.
Aatrey said there are 234 million annual transacting users and 7,06,000 annual transacting sellers. The platform has over 50,000 active content creators. Meesho is set to list at over Rs 50,000 crore valuation at the upper-end of the band. He added that they wanted to pick a valuation that attracts the right long-term shareholders.
Meesho monetises its platform through services that are provided to sellers, such as order fulfilment, advertising and data insights. According to its Updated Draft Red Herring Prospectus, in fiscal 2025, 198.77 million annual transacting users transacted on Meesho, of whom 174.43 million were from outside Top-8 cities in India. About 54.22% of its consumers in the fiscal were women.
Also, the company has reduced its Average Order Value (AOV) from Rs 336.71 in fiscal 2023, Rs 298.36 in fiscal 2024, to Rs 274.27 in fiscal 2025, and was Rs 269.36 in the three months period ended June 30, 2025.