Indian social commerce Meesho valued at $2.1 billion in new $300 million fundraise


Meesho mentioned on Monday it has raised $300 million in a brand new financing spherical led by SoftBank Imaginative and prescient Fund 2 because the Indian social commerce startup works to turn out to be the “single ecosystem that may allow all small companies to succeed on-line.”

The brand new spherical — a Sequence E — provides the five-year-old startup a valuation of $2.1 billion, up from about $600 million-$700 million within the 2019 Sequence D funding. The Indian startup, which has raised about $490 million to this point, mentioned present buyers Fb, Prosus Ventures, Shunwei Capital, Enterprise Freeway and Knollwood Funding additionally participated within the new spherical.

This deal seems to be Shunwei Capital’s first funding in an Indian startup in almost a yr. New Delhi final yr launched a rule to require its approval earlier than a Chinese language investor might write a test to an Indian agency.

Bangalore-based Meesho operates an eponymous on-line market that connects sellers with prospects on social media platforms similar to WhatsApp, Fb and Instagram. Its choices embrace order administration, caring for logistics, on-line funds, real-time store updates and permitting companies to get their prospects to subscribe.

The startup claims to have a community of greater than 13 million entrepreneurs, a majority of whom are girls, over 100,000 suppliers throughout almost 5,000 Indian cities and cities that largely cope with grocery, attire, residence home equipment and electronics objects.

Meesho mentioned it can deploy the recent capital to assist 100 million people and small companies within the nation to promote on-line. “Within the final one yr, we now have seen super progress throughout small companies and entrepreneurs in search of to maneuver their companies on-line,” mentioned Vidit Aatrey, co-founder and chief govt of Meesho, in an announcement.

Amid COVID, which prompted New Delhi to problem a months-long lockdown, Meesho launched Farmiso, a product that allowed anybody to begin an internet grocery store on-line with none funding. Aatrey mentioned on Monday that Farmiso has emerged as Meesho’s quickest rising enterprise. (Previous to the pandemic, Meesho had additionally began to increase in Southeast Asia, however has scaled down these efforts in latest months.)

“We’ve got been carefully monitoring Meesho for the final 18 months and have been impressed by their progress, day by day engagement metrics, concentrate on unit economics and talent to create a robust staff. We consider Meesho gives an environment friendly platform for SME suppliers and social resellers to onboard the e-commerce revolution in India and assist them present customized expertise to shoppers,” mentioned Sumer Juneja, associate at SoftBank Funding Advisers, in an announcement.

In a latest report, UBS analysts recognized social commerce and business-to-business marketplaces as potential sources of competitors to e-commerce corporations similar to Amazon and Flipkart in India.

Picture Credit: Meesho

Social commerce is one outstanding wager to tackle fashionable e-commerce that has struggled to make inroads in India, regardless of billions of {dollars} ploughed by Amazon and Flipkart. One other wager is digitizing neighborhood shops within the nation — with out a lot of the social ingredient — that dot tens of 1000’s of cities, cities and villages in India. International giants Fb and Google are backing each the horses.

“Globally, SoftBank has at all times been excited to again founders that present distinctive options for the native market. By utilizing the ability of synthetic intelligence and machine studying, Meesho has created a platform for a lot of small enterprise homeowners to promote to the subsequent cohort of web customers. We look ahead to being part of this journey,” mentioned Munish Varma, managing associate at SoftBank Funding Advisers, in an announcement.


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