About the Business
Meesho is an Indian startup company with an ecommerce app that specializes in the resale of products from categories like women’s fashion, jewelry, men’s products, beauty and health, kids, electronics, and home goods.
The ecommerce app business allows anyone to become a Meesho entrepreneur without any previous investments by sharing their catalog of items to their contacts through WhatsApp, Facebook, and Instagram.
Founded in 2015, the company offers order and logistical management, online payments, and real-time shop updates, allowing businesses to get their customers to subscribe to their shops.
$300 Million in New Funding for the Startup
Today, Meesho announced the ecommerce app business raised $300 million in a Series E funding round led by SoftBank Vision Fund 2 with participation from existing investors, Prosus Ventures, Shunwei Capital, Venture Highway, and Knollwood investment. This new funding gives the startup company a valuation of $2.1 billion, gaining unicorn status.
According to the press release, the ecommerce app business has seen rapid growth since its founding. The startup claims it serves more than 13 million entrepreneurs on its platform, resulting in more than 45 million customers in India.
As part of the new funding, the ecommerce app business plans to enable 100 million businesses and individual entrepreneurs, most of which are women, across India to grow their individual ventures.
Founder and CEO of the startup company, Meeso Vidit Aatrey, said in the press release, “...We are focused on expanding our vision — from helping aspiring women entrepreneurs to creating Meesho as a single ecosystem that will enable all small businesses in India to succeed online. In the last one year, we have seen tremendous growth across small businesses and entrepreneurs seeking to move their businesses online. And with our new vision we will enable 100 million small businesses to start, succeed and lead their operations online with Meesho as their partner in their journey.”
The news of this financing for the ecommerce business comes nearly two years after it completed its Series D funding round that resulted in the business raising $125 million — around a $700 million valuation.
Sumer Juneja, partner at SoftBank Investment Advisers, added in the press release, “We have been closely tracking Meesho for the last 18 months and have been impressed by its growth, daily engagement metrics, focus on unit economics and ability to create a strong team. We believe Meesho provides an efficient platform for SME suppliers and social resellers to onboard the e-commerce revolution in India and help them provide personalized experience to consumers.”
The Resale Industry
The resale industry is growing at a rapid pace as subscription services and other ecommerce sites do not require people to leave their homes for traditional shopping. In a report published by ThredUP, an online resale and consignment company, the secondhand market is expected to reach $64 billion by 2024.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.