The platform plans to grow tech and product talent by 2.5-time to achieve its mission of democratizing internet commerce for everyone
Internet commerce platform Meesho, recently announced its latest round of funding of $570 million led by Fidelity Management & Research Company and B Capital Group. Existing investors Prosus Ventures, SoftBank Vision Fund 2, and Facebook also participated in this round. Other new investors include Footpath Ventures, Trifecta Capital, Good Capital, and others.
Following the raise, the company’s valuation has more than doubled to $4.9 billion in less than five months.
“The next wave of growth in India’s digital consumerism will undoubtedly come from Bharat. We’ve always focused our efforts on enabling entrepreneurs from tier-II markets to expand their business and in turn uplift small economic pockets in the country. The new round brings us a step closer to realizing our mission to democratize internet commerce for all, increase regional participation in the digital economy, and add momentum to local businesses. The participation of Fidelity Management & Research Company and B Capital Group is a big vote of confidence in our efforts. We will continue to invest in talent to build best-in-class tech and product solutions, while focusing on growth and furthering our efforts in scaling our online grocery business, Farmiso. I am confident we will continue to chart new milestones as we enable online success for every Indian business,” said Vidit Aatrey, founder and chief executive officer, Meesho.
India’s unorganized retail sector, estimated to be $792 billion is set for the next wave of growth, with digitization enabling rapid expansion and greater reach across the country. With a vision to enable 100 million small businesses, including individual entrepreneurs, to succeed online, Meesho has been said to be democratizing internet commerce by bringing a range of products and new customers online. What started as a reseller-focused platform enabling millions to sell online, has now become a single ecosystem connecting sellers to consumers and entrepreneurs.
In just five months since the last round of funding, Meesho recorded 2.5-time growth in order volume and added a range of new product categories to its roster including sports and fitness, pet supplies, and automotive accessories. The company intends to go deeper into India’s underserved markets, becoming the preferred e-commerce destination for the next billion users in the country.
“We have evaluated e-commerce opportunities across emerging markets and are excited about Meesho’s focus on strong unit economics and a consumer-first approach. We are excited to partner with Meesho and its exceptional team that is democratizing e-commerce for a billion internet users across the country. Meesho’s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform. It has rapidly emerged as a leading player in this space. Meesho is now enabling 100 million SMBs across tier-II cities, empowering them to sell online, leveraging its digital commerce platform,” added Kabir Narang, founding general partner, B Capital Group.
The company is invested in providing entrepreneurs and consumers equity in e-commerce by reducing entry barriers, improving logistical infrastructure for tier-II markets, and fuelling the discoverability of hyperlocal businesses and products. With industry-first initiatives like 0 per cent commission, sellers can now earn better profit margins and grow their business, while providing individual entrepreneurs and consumers access to locally sourced products at the lowest prices.
With an aim to reach 100 million monthly transacting users by December 2022, Meesho expects to utilize the fresh round of funding to grow its technology and product talent by 2.5-time, increase its roster to more than 50 million products, and become the platform of choice for customers, entrepreneurs, and sellers from all corners of India. Meesho is also looking to expand its groceries and FMCG offerings with Farmiso (Meesho Grocery), its community group buying a business to more than 200 cities. By making online grocery shopping affordable for first-time users across India’s tier-II markets, the company is enabling them to shop from a wide selection of groceries at ticket sizes as low as $1-2, the company said.