Meesho is one of India’s most successful, well-known, and self-prepared e-commerce platforms. Meesho is quite popular among Indian customers.
Thousands of individuals visit this website every day. Vidit Aatrey and Sanjeev Barnwal, both IIT Delhi graduates, founded the company in December 2015, December. Its headquarter is in Bangalore, Karnataka.
Meesho simply refers to Meri Shop, India’s newest unicorn, and functions as an online reselling marketplace. This allows small businesses to engage and sell through social media sites.
The big attraction of Meesho is the ability to establish an online business without any investment and by being at home.
Meesho Business Model
Vidit Aatrey, the founder of Meesho, wanted to offer people who were having trouble starting a business a place to purchase.
Meesho’s business model focuses on allowing women, housewives, as well as some men to create an online shop for free on Facebook, WhatsApp, and Instagram. The most significant barrier to entry for average small business entrepreneurs in India is the initial expenditure.
So, as a result of this difficulty, they came up with the concept of Meesho, and he began Meesho in December 2015.
Meesho’s business model presently comprises a network of over a million dealers in over 700 locations around India. Now, The 17 million Meesho Suppliers who commit their time and products are the driving force behind all of these achievements.
As a result, their products and brands are getting a lot of attention. In FY20, the business made INR 307 crore, up from INR 80 crore in FY19.
How Meesho Works?
- Meesho partners with the product’s maker and seller to list it on the Meesho platform. They make a deal with the sellers and list those products.
- Through their advertising and promotion, the company draws the reseller. The Reseller then uses Meesho’s services to resell the goods on Facebook, Instagram, Whatsapp, and other social sites.
- When a customer decides to buy an item, they make an order with the reseller. After taking the order, the reseller inserts their profit rate on that specific item to it.
- In the final stage, the product is delivered to the Customer. After receiving the money from the customer, Meesho deposits the profit to the reseller’s account.
Thus how Meesho’s Business runs.
Meesho Revenue Model
Meesho currently employs over 750 people and serves a customer base of over 20 million resellers.
Meesho’s business plan works in the same way as every other eCommerce service provider’s business model does. To further understand Meesho’s Business Model and how it generates revenue, let’s go over their sales funnels-
- Commission
Meesho earns money via seller commissions. Sellers pay a compensation of 10-20% to the firm depending upon products.
- Penalty
Sellers are penalized by Meesho if they fail to deliver the merchandise. It also provides Meesho with a good source of income.
- Logistics
Meesho builds a distribution system and earns a lot of money through logistics. Meesho will generate Rs.36 crore in revenue from shipping in 2019.
- Advertisements
Meesho significantly increases their income by featuring them on their app and website, since the number of dealers grows every day. Meesho charges a substantial fee to vendors who want to advertise their products on the platform.
- Data
Big data is very valuable. Meesho collects a large quantity of data, some of which it sells to its partners so that they can use it for their profit as well as that of their customers. Meesho, on the other hand, works hard to keep customers’ personal information and other sensitive information protected.
Meesho Funding And Valuation
Meesho had become the brand new unicorn in April 2021. It was valued at $2.1 billion after receiving $300 million in a new financing round led by SoftBank Vision Fund 2.
A $570 million fundraising round for Meesho was launched in 2021 by Fidelity Management and Research Company and B Capital Group, a venture capital firm co-founded by Facebook co-founder Eduardo Luiz Saverin.
This financing was also supported by current investors Prosus Ventures, Facebook, and SoftBank Vision Fund 2. Some of the new investors added are Footpath Ventures, Good Capital, Trifecta Capital. In less than five months after the fund-raise, the company’s value had more than doubled, reaching $4.9 billion.
In the five months since its last round of funding, Meesho has witnessed 2.5x growth in order volume and has expanded its product catalog to include sports and fitness, pet supplies, and vehicle components.
The company plans to extend into India’s least developed marketplaces and become the country’s preferred e-commerce platform for another billion users.
Meesho’s goal is to reach 100 million commercial users monthly by the end of 2022. With this new round of funding, it plans to triple its technical as well as product talent. It intends to enlarge its product library to more than 50 million products and become the go-to destination for Indian buyers, merchants, and business owners.
Farmiso (Meesho Groceries), Meesho’s community organization buying (CGB) business, is also attempting to expand its groceries and consumer goods services to more than 200 cities.
By delivering online grocery shopping at a reasonable price, the firm allows first-time clients in India’s phase 2 marketplaces to buy from a vast selection of groceries for as little as 1or 2 dollars.
Many companies are prospering from the changing social media landscape, and Meesho is one of them. According to the records of Statista, more than 3.6 billion individuals throughout the world used social media in 2020, and the figure is expected to rise to over 4.41 billion in 2025.
As of November 2021, Facebook is the most popular social network in the world, with roughly 2.89 billion+ monthly active members, followed by Youtube (2.29 billion), WhatsApp (2 billion), and Instagram (1.39 billion), and the numbers are constantly expanding.
Also Read: How to Earn Money From Meesho?
Who Is Behind Meesho?
There are two main people behind Meesho who were IIT Delhi Graduates and they began their journey in December 2015.
Vidit Atrey and Sanjeev Barnwal are the two personalities in question. They founded Meesho, a social commerce platform that permits customers to resell things through social media like WhatsApp, Facebook, Instagram, and others.
Empowering the Women was their motto when they first started this company. They wanted to commemorate Indian women’s financial independence. As a result, Crores of people have trusted them and became a part of Meesho.
Why Is Meesho So Successful?
Meesho was established by Vidit Aatrey and Sanjeev Barnwal in December 2015. In the initial stage, though they were not incurring profit their start up was getting exposure day by day.
Their main motto was to offer people a place through which women, students, even men can earn by being at home without any investment. Now, Meesho is one of India’s leading reselling platforms by generating a revenue of Rs 300 crore.
The reason behind the success of Meesho is the hard work of founders Vidit Aatrey and Sanjeev Barnwal. The genuine products and services provided by Meesho have been able to grab lakhs of people’s attention.
It has given genuine opportunities to lots of people to earn money from home. Besides, the excellent marketing and advertising strategies of Meesho are another reason for its success.
Also Read: What is Meesho App And How Does Meesho Work?
Final Thoughts
Meesho is one of several Indian startups that have prospered because of their excellent audience targeting and marketing strategies. The simplest approach to understand why Meesho has been so popular is to sign up for an account and try out the platform for yourself.
