Meesho Explained

Meesho
Industry:E-commerce
Location:Bangalore, Karnataka, India
Services:Online shopping
Revenue: (FY23)[1]
Net Income: (FY23)
Area Served:India
Owner:Fashnear Technologies Private Limited

Meesho (short for Meri Shop, trans. My Shop)[2] is an online shopping platform owned by the Indian company Fashnear Technologies Private Limited.[3] [4] It is an online marketplace that facilitates trade between suppliers, resellers and customers, with heavy reliance of external social media platforms such as Facebook and Instagram.[5]

History

Fashnear Technologies Private Limited was established by IIT Delhi graduates Vidit Aatrey and Sanjeev Barnwal in December, 2015[6] [7] as an on-demand delivery service like Swiggy but for fashion products from local shops. The startup failed. In 2016, the founders came up with the idea of re-establishing the platform as Meesho, one that would enable country-wide shipping for resellers with the use of social media sites as tools for marketing.[8]

Meesho had 209,000 users and 1.2 million orders per month in February 2019 and 563,000 users and 3.1 million orders per month in March 2020.[9] It saw big growth during 2021 and 2022.[10] Meesho's monthly transacting user count rose 26 times during 2020–2022. Globally, Meesho mobile app was among the top most downloaded apps in 2021.[11] In 2022, Meesho had about 120 million monthly users and about 910 million orders were made through the platform. It soon became one of India's fastest growing e-commerce platforms. Its gross merchandise value (GMV) increased ninefold in two years[12] and was at about $5 billion in 2022 (for comparison, Flipkart's GMV stood at $23 billion).[13] [14]

In 2023, Meesho was named one of the most influential companies of the year by Time (magazine).[15] [16] In the same year, Meesho also became the fastest shopping app to cross over 500 million downloads.[17] [18]

In 2024, Meesho introduced Valmo, a logistics marketplace, to provide shipment services to sellers by aggregating multiple logistics providers. Meesho employs over 3,000 small businesses and 10-12 large firms for warehousing and sorting operations within its logistics framework.[19]

According to a report by The Economic Times, Meesho's Gross Merchandise Value (GMV) exceeds $5 billion, with a focus on fashion, beauty, and home categories. The platform boasts 120 million monthly active users, with 80% of its sellers identified as retail business owners and 95% of its offerings being unbranded.[20]

Funding

Meesho is funded by multiple investment companies including Fidelity, Softbank,[21] Prosus, B Capital Group, Sequoia India[22] and Meta. Meesho has held many funding rounds.

In 2021, the company announced that it had raised approximately US$1.1 billion in funding thus far and currently has a cash buffer of US$400 million.[26] [27] [28]

See also

Notes and References

  1. News: Manchanada . Kunal . Meesho reports Rs 5,735 Cr revenue in FY23; losses shrink 48% . 27 January 2024 . Entrackr . 29 December 2023.
  2. Web site: 2023-04-12 . Meet Vidit Aatrey And Sanjeev Barnwal, The Meesho Founders Whose Earlier Venture Failed . 2024-06-01 . News18 . en.
  3. Web site: Vidit Aatrey & Sanjeev Barnwal: Redefining Distribution With Meesho . 2023-05-17 . Forbes India . en.
  4. Web site: Tech in Asia – Connecting Asia's startup ecosystem . 2023-05-17 . techinasia.com . en-US.
  5. Web site: Purnell . Newley . Meta-Backed Meesho Is Beating Amazon, Walmart in Race for Indian Shoppers . WSJ . October 22, 2022 . September 20, 2023.
  6. Web site: Meesho Creates Stores for Indian SMBs Selling Through WhatsApp . 2023-05-17 . Y Combinator . en.
  7. Web site: Vidit Aatrey & Sanjeev Barnwal: Redefining Distribution With Meesho . 2024-06-01 . Forbes India . en.
  8. Web site: Russell . Jon . Meesho wants to make selling through WhatsApp more efficient and less painful . TechCrunch . 26 August 2023 . Palo Alto, California . 18 August 2016.
  9. Web site: 2021-11-16 . Meesho logs 17.8 mn users in Sept; aims to reach 100 mn by Dec 2022 . 2023-05-17 . Business Today . en.
  10. News: Purnell . Newley . 2022-10-22 . Meta-Backed Meesho Is Beating Amazon, Walmart in Race for Indian Shoppers . en-US . Wall Street Journal . 2023-05-30 . 0099-9660.
  11. Web site: How Meesho's Big, Bold Bets Took It Close To $5-billion Valuation At Lightning Speed . 2023-05-17 . Forbes India . en.
  12. News: 2023-04-24 . Meesho’s growing scale, differentiated business model make profitability a reality in 2023: Jefferies . en-IN . The Hindu . 2023-05-17 . 0971-751X.
  13. Web site: 2023-04-22 . Meesho’s average monthly user count 55 per cent that of Flipkart, Amazon India: Report . 2023-05-17 . www.thehindubusinessline.com . en.
  14. Web site: 2022-12-22 . With 910 million orders in 2022, Meesho grew 135% y-o-y . 2023-05-17 . Financialexpress . en.
  15. Web site: TIME100 MOST INFLUENTIAL COMPANIES 2023 . time.com . Tara Law . 21 June 2023.
  16. Web site: Meesho on TIME's 100 most influential companies . moneycontrol.com/ . MONEYCONTROL NEWS . 22 June 2023.
  17. Web site: Meesho becomes world's fastest shopping app to cross 500 mn downloads . business-standard.com/ . Peerzada Abrar . 1 June 2023.
  18. Web site: 'Meesho becomes world’s fastest shopping app to cross 500 million . timesofindia.indiatimes.com/ . Asmita Dey . 2 June 2023.
  19. Web site: Meesho launches logistics vertical Valmo . The Economic Times . 2024-02-07 . 2024-04-04.
  20. Web site: Goel . Pallavi . ET Retail . ETRetail.com . 2024-01-25 . 2024-04-04.
  21. News: 2023-04-24 . Meesho’s growing scale, differentiated business model make profitability a reality in 2023: Jefferies . en-IN . The Hindu . 2023-05-17 . 0971-751X.
  22. Web site: Shu . Catherine . "Social selling" startup Meesho lands $11.5M Series B led by Sequoia India . TechCrunch . 26 August 2023 . 7 June 2018.
  23. Web site: Shu . Catherine . Social commerce startup Meesho gets $3.4M Series A to build a reseller network in India . TechCrunch . 26 August 2023 . 13 October 2017.
  24. Web site: Russell . Jon . India's Meesho, which enables social commerce via WhatsApp, raises $50M . TechCrunch . 26 August 2023 . 6 November 2018.
  25. Web site: Singh . Manish . 2019-06-13 . Facebook backs social commerce startup Meesho in first India investment . 2023-05-17 . TechCrunch . en-US.
  26. Web site: Meesho raises more than half a billion dollars in the fourth biggest funding round this year . 2023-05-17 . www.businessinsider.in.
  27. Web site: 2022-03-25 . Social e-com firm Meesho eyes $500-mn war chest; funds to be used for M&As . 2023-05-17 . www.business-standard.com . en-US.
  28. Web site: Meesho eyes EBITDA breakeven this year . 2023-05-17 . FashionNetwork.com . en-IN.

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