Meesho taps AI and diversified services to accelerate growth

Indian e-commerce platform Meesho is intensifying its focus on artificial intelligence and new revenue streams as it pushes to expand market share in a competitive domestic landscape. The company, known for empowering small sellers and resellers, is deploying AI to sharpen product discovery, personalize recommendations, and streamline seller tools — moves intended to boost conversion rates and seller retention.

Beyond optimizing the core marketplace, Meesho is broadening its commercial footprint with complementary business lines. These include ad products for merchants, financial services such as payments and credit-enablement for sellers, and expanded logistics and seller support offerings. By turning platform capabilities into monetizable services, Meesho aims to diversify revenue and reduce reliance on pure transactional margins.

AI underpins many of these efforts. Machine learning models are being applied to inventory forecasting, search relevance and dynamic ranking, fraud detection, and customer segmentation. For sellers, intelligent tooling can automate catalog uploads, recommend pricing and assortment, and surface demand signals. For shoppers, personalization can shorten discovery cycles and increase average order values.

The strategy reflects a broader industry shift: marketplaces are evolving into multi-product ecosystems where advertising, fintech and software-as-a-service augment commerce. For Meesho, those adjacent products also address a practical need — helping thousands of small merchants scale while generating recurring, higher-margin income for the platform.

Competition remains intense. Global giants and deep-pocketed domestic rivals continue to invest heavily in logistics, pricing and customer acquisition. Meesho’s emphasis on AI and vertically integrated services is designed to differentiate its value proposition to both buyers and micro-entrepreneurs.

Execution risks include the cost of building sophisticated AI systems, the need for robust data governance, and the challenge of monetizing new services without alienating price-sensitive users. Success will depend on Meesho’s ability to convert improved user experiences into sustainable revenue growth while keeping service economics favorable for small sellers.

If effectively implemented, the combined approach of smarter personalization and a mix of commerce-adjacent services could help Meesho scale profitably and deepen engagement across its marketplace ecosystem.