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.

• Meesho operates on a commission-based model, whereby sellers can earn a profit by incorporating a gross margin to every transaction.
• It is highly likely that the e-commerce reseller Meesho is already a known name among consumers and sellers alike.
• The platform has successfully established its own market position and has received widespread acceptance by offering convenient and cost-effective online reselling and shopping experiences.
• Meesho ensures secure and prompt financial transactions and offers easy return policies and low-priced shipping. With over 2.6 million resellers across India relying on the platform’s services, Meesho has earned their trust and loyalty.

Established in 2015, Meesho is currently the largest resale platform in India. The Meesho app operates by connecting manufacturers with resellers, who can then list the manufacturers’ goods on social media platforms like WhatsApp, Facebook, and Instagram. The app has a diverse range of suppliers including clothing, accessories, furniture, culinary utensils, and cosmetics producers. Know more about Inside Apple’s First Retail Store in India: A Visual Treat

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.

Once a customer expresses interest in purchasing, the item is delivered to their doorstep either via cash on delivery or a credit/debit card transaction. Meesho prides itself on providing a secure and efficient platform for both resellers and buyers.

Operated as FASHEAR in the Past

Back in 2015, Meesho, originally known as FASHNEAR, commenced operations to facilitate the purchase of various fashion-related merchandise from local shops. The app operated on a concept similar to that of Swiggy or Zomato, except that it uniquely catered to fashion items.

The platform enabled apparel and accessory shops to register with the FASHNEAR app, allowing customers to make orders and receive delivery directly from the stores. After few months the founders  Sanjeev Barnwal and Vidit Aatrey realized that these business model will not work and then by the end of 2015 they changed the name to “Meesho”. Also go through Try These Amazing Online Shopping Hacks

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:

• Presently, the startup boasts a user base of 100 million transacting individuals. Over the course of FY22, the company managed to achieve a fivefold increase in its pool of customers.
• During fiscal year 2022, the gross merchandise value experienced a threefold increase.
• The Meesho platform facilitates the sale of over 40 million
• Currently, the delivery network reaches over 26,000 pin codes and encompasses more than 4,800 cities throughout India.

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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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