Meesho's insourcing boom to hurt Delhivery, Jefferies says

Delhivery

02/12/2025 05:11

** Logistics services provider Delhivery DELH.NS falls as much as 1.1% to 412.90 rupees

** Jefferies cites risks from e-commerce platform Meesho's increasing reliance on its in-house low logistics arm Valmo

** Valmo handles ~50% of Meesho's shipments at lower cost vs third party logistics providers such as Delhivery

** Meesho accounted for ~16% of Delhivery's FY25 revenue, per Jefferies' estimates; says shift to insourcing would weigh on Delhivery's mainstay express parcels growth

** Maintains "underperform", with PT of 390 rupees

** Meesho seeking valuation up to $5.6 billion for its IPO, which opens for retail subscription on December 3

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))