In a significant advancement for customer support in the Indian ecommerce sector, Meesho, a SoftBank-backed company, has officially launched a generative AI-powered voice bot. This AI voice assistant aims to enhance customer interactions and streamline support in a market that is constantly evolving. With features that include emotion recognition and human-like engagement, this initiative marks a first-of-its-kind implementation in the ecommerce landscape of India.
| Table of Contents |
|---|
| Performance of the AI Voice Bot |
| Meesho’s Background |
| Financial Performance |
| Previous Controversy |
| FAQ |
Performance of the AI Voice Bot
Since its debut just over a month ago, Meesho’s AI voice bot has already demonstrated significant impact, reducing per-customer call costs by 25%. The bot is currently adept at managing around 60,000 post-order queries daily, which is less than half of the total daily call volume Meesho receives. Plans are already in motion to expand the bot’s capabilities to handle all post-order queries, with expected further cost reductions in the range of 15-20%.
The AI voice assistant currently supports interactions in Hindi and English, with future enhancements scheduled to include additional Indian languages. Notably, the introduction of this automation is not expected to lead to layoffs; instead, Meesho plans to upskill its customer executive team, equipping them to handle more complex calls and inquiries.
Meesho’s Background
Founded in 2015, Meesho initially began its journey as a social ecommerce startup but pivoted to a marketplace model in 2022, seeking to bolster its competition against industry giants like Flipkart and Amazon. The company has strategically focused on capturing markets in Tier-II and Tier-III cities across India, a demographic that significantly contributes to its revenues. In fact, over 80% of Meesho’s revenue is generated from these areas.
The business model adopted by Meesho distinguishes itself from typical ecommerce platforms by not charging commission fees on transactions. Instead, the company relies on advertising and marketing income generated from sellers on its platform.
Financial Performance
Despite the recent technological advancements, Meesho, in FY24, reported a net loss of INR 304.9 crore, which indicates a substantial reduction of 81.8% from the previous year. The company marks an operating revenue of INR 7,614.9 crore, showing resilience and growth despite the competitive pressures and operational challenges in the sector.
Previous Controversy
Earlier this year, Meesho faced significant backlash after listing t-shirts featuring images of notorious criminal figures, such as gangster Lawrence Bishnoi, which led to widespread criticism. Following the public outcry, the company swiftly removed the controversial products from its platform, highlighting the challenges and scrutiny faced by ecommerce companies regarding their product listings and community impact.
FAQ
1. What is the unique feature of Meesho’s AI voice assistant?
Meesho’s AI voice assistant is distinguished by its capability to recognize emotions and facilitate human-like conversations, all while managing a substantial volume of customer queries.
2. How does the AI voice bot impact operational costs?
The AI voice bot has successfully reduced per-customer call costs by 25% since its launch, with expectations of further reductions as the bot scales its functions.
3. Will Meesho’s AI integration result in job losses?
No, Meesho has stated that automation will not lead to layoffs; instead, the company will upskill its customer support team for handling more sophisticated inquiries.
