Meesho, an Indian e-commerce powerhouse with 150 million active users, has just raised $275 million in a recent funding round, as revealed in a regulatory filing.
This investment is part of a bigger funding initiative that could surpass $500 million, including secondary sales, according to sources who spoke to TechCrunch.
Valued at approximately $3.9 billion in this round, the Bengaluru-based company, known for its social commerce platform, has accumulated over $1.2 billion in funding. Its valuation peaked at $4.9 billion back in September 2021.
Investors like WestBridge Capital and Norwest Venture Partners have shown interest in Meesho, with WestBridge acquiring shares from an initial investor, Venture Highway, last year. Meesho’s investor roster includes big names like Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank.
The Economic Times was the first to report this new investment.
As one of India’s rapidly expanding e-commerce firms, Meesho has a projected Gross Merchandise Value (GMV) exceeding $5 billion, as estimated by Bernstein analysts.
The company has won over budget-savvy Indian shoppers with its wide range of affordable, diverse, and non-branded products. This approach seems to click with the country’s predominant low- to mid-income consumer segment.
Meesho stands out with its 440,000 yearly active sellers and more than 120 million product listings, offering one of the broadest selections available, serving India’s varied consumer tastes, as noted by Jefferies.
While traditional online retailers in India target higher-income shoppers with branded items, leading to average order values above ₹1,000 (around $12), Meesho’s average order value typically falls below ₹350.
Jefferies analysts highlight that Meesho’s algorithm boosts product visibility based on several criteria, including seller and product ratings, customer feedback, shopping history, and product popularity, with pricing also playing a role.
Meesho keeps its fulfillment costs lower than competitors, enabling it to offer better prices. The company adopts a cost-effective, asset-light approach by outsourcing deliveries and commands nearly half of India’s annual third-party logistics (3PL) e-logistics market.
However, Meesho faces growing competition, as Amazon India has recently introduced Bazaar, a store dedicated to budget-friendly, fashionable items.
Social commerce platform Meesho raises $275 million: Reports
