Meesho- Great Indian Startup

Amazon and Flipkart are two major online sellers in India and competing with this large companies is not a kid’s play. But still there are some startups who know what they are doing and how to deal things in difficult times. The name of this company is Meesho an online apparel store which provides clothes at a great deal.

The initial days

The aspiration of the startup headquartered in Bangalore is to create a platform that enables individuals to set up a business without any monetary investment.

In addition to having a vast network of over 2 million resellers, the company takes pride in its impressive record of collaborating with more than 20,000 Meesho suppliers hailing from over 500 towns.

How was the orders maintained?

Independent resellers are free to select any product from the suppliers and subsequently promote it via social media sites. The process is simplified and can be as straightforward as uploading a photograph of the product on Instagram or creating a Facebook post.

The revenue record

In relation to its business model, it cannot be definitively stated that Meesho operates on a D2C (Direct to Consumer) model. The D2C model involves manufacturers selling their products directly to end consumers.

However, Meesho operates by facilitating transactions between manufacturers and resellers, who act as intermediaries for the end consumers. As such, Meesho functions as a platform that supports businesses - including manufacturers and reselling enterprises - in expanding their sales figures.

• The company charges fees and commissions for these services. In 2021, Meesho transitioned to a B2B (Business to Business) model, moving away from the reselling model it had operationalized from the beginning.
• Meesho’s revenue comes from the four major sources which are commission, logistics, data, and advertisements

New funding Process

In April 2021, Meesho became the newest addition to the distinguished unicorn club, following a successful new investment round led by SoftBank Vision Fund 2 that generated $300 million and valued the company at $2.1 billion. Notably, Meesho's previous valuation was $5 billion in March 2022. As for the most recent growth highlights of Meesho, some of these include:

The future plans of Meesho

Meesho has set an ambitious goal of achieving 100 million monthly transactional users by December 2022, a target it had already achieved by June 2022.

The company plans to utilize the recent funding obtained to enhance its technical and product capabilities, expand its product range to more than 50 million items, and become the preferred platform for users, entrepreneurs, and sellers in India.

Meesho Grocery, also known as Farmiso, its community group purchasing (CGB) division, is looking to broaden its range of grocery and fast-moving consumer goods(FMCG) services to more than 200 cities. The startup is providing affordable online grocery shopping experiences for first-time buyers in tier II markets in India, enabling them to buy a wide variety of food items for as low as $1-2 a ticket.

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