Meesho: Motilal Oswal sees over 30% upside, bets on asset-light business mode

Motilal Oswal Financial Services initiated coverage with a ‘Buy’ rating on Meesho and a target price of Rs 240, implying an upside of over 30% from the current market price. This came on the back of the platform’s unique combination of scale, an asset-light model, and a long runway for growth.

Vast scale and leadership in value e-commerce

Motilal Oswal said that Meesho has established itself as India’s largest e-commerce platform by user base and order volume, boasting 274 million Annual Transacting Users (ATUs) and over 280 crore orders placed in the last twelve months. Its value-led proposition is specifically designed for “Bharat,” with 88% of its users originating from Tier 2+ markets.