INSUBCONTINENT EXCLUSIVE:
Y Combinator alumMeesho, one of several “social selling” startups gaining speed in India, will add more features to its e-commerce
platform after closing a $11.5 million Series B led by Sequoia India
Existing investors SAIF Partners, Y Combinator and Venture Highway also returned for the round, which brings the Bangalore-based startup’s
total funding so far to $15 million
Its last round of funding, a $3.4 million Series A, was announced last October.Like social selling competitors including GlowRoad and Zepo,
Meesho’s model combines dropshipping from its wholesale partners with a comprehensive suite of e-commerce tools and services
This reduces overhead while making it easy for sellers, who Meesho says includes many housewives, students and retirees, to set up an online
business through WhatsApp, Facebook and other social media.Meesho’s tools include an online platform that allows sellers to manage
purchases and process payments, as well as a network of wholesale suppliers (its main categories are currently fashion and lifestyle items)
In other words, it offers almost everything its vendors need to start selling online
This leaves vendors responsible for customer acquisition, picking what items they want to include in their online shops and marketing
them.This reselling model appeals to small stores, as well as individuals, who want to make more money but don’t want the expense of
setting up an e-commerce business from scratch and carrying inventory
Meesho’s rivals include e-commerce startups like GlowRoad, Shopmatic and Zepo, which have also recently raised large funding rounds
All of these companies attract sellers by offering a significant amount of help with order management, payment processing, fulfillment and
logistics.In order to differentiate, chief executive officer Vidit Aatrey, who co-founded Meesho in 2015 with Sanjeev Barnwal, its chief
technology officer, tells TechCrunch it focuses on product quality, pricing and personalization to help resellers improve their sales and
Meesho claims that more than 800,000 resellers have used its platform and that a “typical” reseller earns between 20,000 to 25,000
rupees per month (about $298 to $373).In a press statement about the funding, Sequoia India managing director Mohit Bhatnagar said “Social
commerce is the future of e-commerce in India
People buy from people they trust, and that’s what Meesho enables. Entrepreneurs, many of them women, use the Meesho platform to
recommend, customize and sell to their family and friends
Social selling is a huge trend and Sequoia India is excited to partner with Meesho, which is the early leader in this space.”Aatrey says
Meesho’s Series B capital will be used to hire more people for its tech and product teams in order to build a suite of new customer
acquisition and selling tools
The startup also plans to add more personalization options for its resellers and product categories.
