India has hundreds of millions of smartphone users, but only a fraction of them shop online regularly.
That gap is where Meesho sees its biggest growth opportunity.
According to CEO Vidit Aatrey, only around 30% of India’s smartphone users transact online, compared with more than 80% in some comparable emerging markets. The challenge, he said during the company’s Q4FY26 earnings call, is not smartphone penetration but conversion.
To address that, Meesho is relying heavily on artificial intelligence.
User base continues to grow
Meesho’s annual transacting user base rose 33% year-on-year in FY26 to 264 million.
Management believes attracting first-time and rural customers requires solving some of the barriers that prevent users from making their first purchase.
AI has become a central part of that strategy.
Vaani targets first-time users
One of Meesho’s key initiatives is Vaani, its voice-based AI shopping assistant.
The feature is aimed at users who are more comfortable speaking than typing.
Traditional e-commerce platforms often rely on text searches. For many first-time internet users, particularly in rural areas, that can become a hurdle.
Vaani allows users to search through voice commands instead.
According to management, the feature has helped:
- Improve conversion among rural customers.
- Reduce customer acquisition costs.
- Shorten the journey from app download to first purchase.
PRISM powers product discovery
Meesho is also relying on an AI recommendation engine called PRISM, or Personalised Ranking and Intent Signal Module.
The company unveiled the platform on June 4, 2026.
Today, more than 75% of orders on Meesho come through AI-driven personalised feeds rather than search.
PRISM uses:
- More than 100 AI ranking models.
- Over 400 trillion input signals.
- More than 6 trillion inferences every day.
During peak sales periods, the system processes nearly 100 million inferences per second.
Instead of depending on keywords, PRISM studies browsing patterns and behavioural signals to recommend products.
The system also considers:
- Regional trends.
- User preferences.
- Shopping patterns of similar customer groups.
Multilingual capabilities
PRISM supports more than ten languages, including:
- Hindi.
- Tamil.
- Bengali.
- Odia.
The system runs on BharatMLStack, Meesho’s in-house machine learning infrastructure platform.
According to the company, the platform helps lower inference costs compared with conventional cloud infrastructure.
Meesho Mall expands branded offerings
The company is also building Meesho Mall, its branded products platform.
Rather than targeting premium customers, the business is aimed at value-conscious consumers.
It gives:
- National brands.
- Regional labels.
- Direct-to-consumer companies.
access to a wider customer base.
Management said contribution margins in the segment remain lower because the business is still in the investment phase.
The company expects wider brand availability to encourage repeat purchases over time.
About Meesho
Meesho operates a technology platform connecting consumers, sellers, logistics partners and content creators.
According to the company:
- It had 264 million annual transacting users in Q4FY26.
- Orders placed reached 717 million.
The platform also enables small businesses to sell online with limited upfront investment.
Why AI matters for Meesho
Management believes AI can help bridge the gap between smartphone ownership and online shopping adoption.
Key initiatives include:
- Vaani for voice-based shopping.
- PRISM for personalised recommendations.
- BharatMLStack for multilingual AI infrastructure.
- Meesho Mall to expand product choices.
As the company targets customers beyond India’s established online shoppers, these tools could play an important role in reaching rural and first-time users.
TL;DR:
Meesho is using AI to attract more first-time and rural shoppers. Voice assistant Vaani and recommendation engine PRISM are designed to make product discovery easier and improve conversion as the company expands its user base.
AI summary:
- Meesho’s annual transacting users rose 33% to 264 million.
- Vaani helps rural customers shop through voice commands.
- PRISM powers over 75% of orders on the platform.
- The AI engine processes more than 6 trillion inferences daily.
- Meesho Mall is expanding access to branded products.
