Meesho, which tells ‘Meri Shop’ (my shop), delivers potential entrepreneurs with a fundamental shop, who otherwise would find it difficult to start a business. Meesho regulates as an online reselling platform that enables anyone to start a business without investment. These resellers are mostly homemakers, most of whom have purchased a smartphone for the first time in recent years. Eighty percent of Meesho’s user base is female. The company was founded by Vidit Aatrey and Sanjeev Barnwal in 2015 and is headquartered in Bangalore, Karnataka.
Meesho is a platform in India that authorises people to resell commodities using their social networks. Meesho is a social commerce platform that embarks on retail distribution, enabling small retail merchants to relate and sell their products effectively via social media channels. Meesho was one of the three Indian companies to be selected for Y Combinator in 2016. It was also a part of the first batch of Google Launchpad – Solve for India program. In June 2019. Meesho became India’s first startup to receive investment from Facebook.
Meesho: Competition And Challenges
Meesho has constructed a trustworthy marketplace for suppliers and resellers. Meesho doesn’t communicate with end consumers. Their resellers do that job, regardless of whether it is an online reselling platform or if it’s Myntra or Amazon, the eventual model is eCommerce. Barnwal speculates that resellers engage with customers, understand their suspicions, and take the onus of assuring the right integrity for them, which is something eCommerce platforms don’t always offer.
“We are not facing any competition as of now. Right now, We see this as an alternate way to promote eCommerce, promote social media to the next 500 Mn Indian users. It has become a very convenient medium for them,” Barnwal said.
The 10X Growth policy
Meesho presently has a team of 750 people and stakes to have 21K suppliers on its platform along with a network of 2 Million-micro entrepreneur resellers. The startup is targeting 20 Million-micro entrepreneur resellers by 2020. With 50% of Meesho’s audience coming from Tier 2,3,4 cities, the company claims to have a presence in around 1000 cities.
To broaden its market base by 10X, Meesho is now glancing to bring in those people who always wanted to do something on their own, particularly women who are home-makers. While part-time assistance alternatives are available for women in Tier 1 cities, it’s not the case in smaller towns. The company is also surveying new sectors on the supply side. Such as travel packages where resellers are trying to sell voyage packages to the end consumers. The startup wants to empower homemakers who are ambitious about starting their own business.
Fundraising is not a child’s play. But the amount of time it took social commerce platform Meesho to raise series A funding, and the ambiguity that followed was extremely challenging for Vidit Aatrey, the CEO of Meesho.
Meesho got its first institutional funding of $3 million from SAIF Partners in 2017. This was followed by a $10 million round from Sequoia Capital. One thing led to another, and Facebook and Naspers joined the club. An investors’ darling, the startup has raised $215.2 million till now. Meesho is today backed by some of the most prominent names in the country and across the world including Y Combinator, Facebook, Naspers, SAIF Partners, Sequoia, Shunwei Capital, and RPS. Meesho said the startup would use the fresh capital to expand its reach in the nation and add as many as 18 million new sellers by the end of next year.