Meesho Business Model – Wealth Quint

Meesho is one of the most successful, well-known and self-prepared e-commerce platform in India. Meesho is quite popular among Indian customers.

Thousands of people visit this website daily. Vidit Atre and Sanjeev Barnwal, both IIT Delhi graduates, founded the company in December 2015, December. Its headquarter is in Bangalore, Karnataka.

Meesho simply refers to India’s newest Unicorn My Shop, and acts as an online resale marketplace. It allows small businesses to engage and sell through social media sites.

The big attraction of Meesho is its ability to set up an online business without any investment and from home.

Meesho Business Model

Vidit Atre, the founder of Meesho, wanted to offer this to those who were finding it difficult to start a business.

Meesho’s business model is focused on allowing women, housewives as well as some men to create an online shop on Facebook, WhatsApp and Instagram for free. The most important barrier to entry for the average small business entrepreneur in India is the initial expense.

So, as a result of this difficulty, they came up with the concept of Meesho, and they started Meesho in December 2015.

Meesho’s business model currently includes a network of over one million dealers in over 700 locations across India. Now, the 17 million Meesho suppliers who dedicate their time and products are the driving force behind all these achievements.

As a result, their products and brands are getting a lot of attention. In FY20, the business earned INR 307 crores, which was higher than INR 80 crores in FY19.

How Meesho Works,

  1. Meesho has partnered with the manufacturer and seller to list the product on the Meesho platform. They deal with vendors and list those products.
  1. Through its advertising and promotions, the company attracts resellers. The reseller then uses Meesho’s services to resell the goods on Facebook, Instagram, WhatsApp and other social sites.
  1. When a customer decides to purchase an item, they place an order with the reseller. After placing the order, the reseller includes his profit rate on that specific item.
  1. In the final stage, the product is delivered to the customer. After receiving the money from the customer, Meesho credits the profit to the reseller’s account.

This is how Meesho’s business runs.

misho revenue model

Meesho currently employs over 750 people and serves a customer base of over 20 million resellers.

The business plan of Meesho works in the same way as the business model of every other eCommerce service provider. To understand more about Meesho’s business model and how it generates revenue, let’s move on to their sales funnel-

  1. commission

Meesho earns money through seller commission. The sellers give 10-20% compensation to the firm depending on the products.

  1. a punishment

If sellers fail to deliver the goods they are penalized by Meesho. It also provides a good source of income to Meesho.

  1. logistics

Meesho builds a distribution system and earns a lot of money through logistics. Meesho will generate Rs 36 crore revenue from shipping in 2019.

  1. advertisements

Meesho significantly increases their income by displaying them on its app and website, as the number of dealers is increasing every day. Meesho charges a lot to the vendors who want to advertise their products on the platform.

  1. statistics

Big data is very valuable. Meesho collects huge amounts of data, some of which it sells to its partners so that they can use it for their own benefit as well as the benefit of their customers. Meesho, on the other hand, works hard to keep customers’ personal information and other sensitive information secure.

Meesho Funding and Valuation

In April 2021, Meesho became a brand new unicorn. 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 funding was also supported by existing investors Prosus Ventures, Facebook and SoftBank Vision Fund 2. Some of the new investors added include Pavement Ventures, Good Capital, Trifecta Capital. Less than five months after the fund-raising, the company’s value more than doubled, reaching $4.9 billion.

In the five months since its last round of funding, Meesho has seen a 2.5-fold increase in order volume and has expanded its product catalog to include sports and fitness, pet supplies and vehicle components.

The company plans to expand into India’s least developed markets and become the country’s preferred e-commerce platform for another billion users.

Meesho aims to reach 100 million commercial users every month by the end of 2022. With this new round of funding, it plans to triple its technical and product talent. It intends to expand its product library to over 50 million products and become the go-to destination for Indian buyers, traders and business owners.

Farmiso (Meesho Grocery), Meesho’s Community Organization Buying (CGB) business, is striving to expand its groceries and consumer goods services to more than 200 cities.

By providing online grocery shopping at reasonable prices, the firm allows first time customers in Phase II markets of India to shop from a vast selection of groceries for as little as $1 or 2.

Many companies are flourishing with the changing social media landscape, and Meesho is one of them. According to Statista records, more than 3.6 billion individuals worldwide used social media in 2020 and this figure is expected to increase to over 4.41 billion in 2025.

As of November 2021, Facebook is the most popular social network in the world, with approximately 2.89 billion+ monthly active members, followed by Youtube (2.29 billion), WhatsApp (2 billion), and Instagram (1.39 billion), and the number continues to grow. Expansion.

Read also: How to earn money from Meesho?

Who is behind Meesho?

There are two main people behind Meesho who were IIT Delhi graduates and started their journey in December 2015.

Vidit Atre and Sanjeev Barnwal are two personalities who are being questioned. He founded Meesho, a social commerce platform that allows customers to resell things through social media such as WhatsApp, Facebook, Instagram and more.

Empowering women was her motto when she first started this company. They wanted to celebrate the financial independence of Indian women. As a result, crores of people trusted him and became a part of Meesho.

Why is Meesho so successful?

Meesho was founded by Vidit Atre and Sanjeev Barnwal in December 2015. In the initial phase, though he was not making profit, his startup was getting exposure day by day.

Their main objective was to provide a place to the people through which women, students, even men can earn by staying at home without any investment. Now, Meesho is one of the leading resale platforms in India by earning a revenue of Rs 300 crores.

The reason behind the success of Meesho is the hard work of the founders Vidit Atre and Sanjeev Barnwal. The genuine products and services provided by Meesho have been able to grab the attention of millions.

It has given real opportunities to many people to earn money from home. Furthermore, Meesho’s excellent marketing and advertising strategies are another reason for its success.

Read also: What is Meesho App and how does Meesho work?

final thoughts

Meesho is one of the many Indian startups that have prospered due to their excellent audience targeting and marketing strategies. The easiest way to understand why Meesho is so popular is to sign up for an account and test the platform for yourself.

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