New Delhi, Oct. 23 -- For millions of Indians in small towns, e-commerce transactions are completed only once the product arrives at their doorstep as they typically choose cash on delivery (COD). For IPO-bound online marketplace Meesho, which has a strong presence in small towns, this is a clear red flag.

More than 76% of the 1.59 billion orders the company shipped in FY25 were COD, down from 85% in FY24 and 88% in FY23, according to updated draft IPO papers Meesho filed with the stock exchanges earlier this week.

While the share of COD orders has been declining gradually, it remains alarmingly high. Let's take a close look at why this is a problem for Meesho and other e-commerce companies, especially those that focus on small towns. ...