Meesho mops up $3.1 m from SAIF-led investors
, ET Bureau|
Updated: Oct 13, 2017, 02.00 AM IST
BENGALURU: Social e-commerce startup Meesho has raised $3.1 million from investors led by SAIF Partners in a fresh round of funding. Existing investors Y Combinator and Venture Highway also participated in the round.
This brings the Bengaluru-based and US-registered startup’s overall funding to $3.7 million. Apart from Y Combinator and Venture Highway, Meesho had also raised $350,000 from some angel investors in convertible debt.
The company plans to use the fresh funds to hire for its tech and business operation teams, CEO Vidit Aatrey said. The company is also looking to scale up its platform by bringing in more resellers though community engagement and referrals. Meesho connects suppliers to a network of resellers largely comprising housewives, who then use channels such as WhatsApp and social media platforms Facebook and Instagram to promote these products within their social circles.
It has about 20,000 resellers and more than 1,000 suppliers on its marketplace, mainly in the categories of fashion, lifestyle and home, and kitchen. “We are building a new distribution channel for suppliers and helping housewives earn from within their social networks,” said CEO Vidit Aatrey.
A reseller earns 10-20% commission on each transaction. Mukul Arora, managing director at SAIF Partners said, “This is a very Indiaspecific opportunity with strong tailwinds, and has potential to change how long tail products are sold in India.”
Meesho has partnered with thirdparty logistics players to enable deliveries. About half of its orders are fulfilled through cash on delivery, 25% through payment gateways, for which it has tied up with Razorpay, while the rest are done through mobile wallets.
This brings the Bengaluru-based and US-registered startup’s overall funding to $3.7 million. Apart from Y Combinator and Venture Highway, Meesho had also raised $350,000 from some angel investors in convertible debt.
The company plans to use the fresh funds to hire for its tech and business operation teams, CEO Vidit Aatrey said. The company is also looking to scale up its platform by bringing in more resellers though community engagement and referrals. Meesho connects suppliers to a network of resellers largely comprising housewives, who then use channels such as WhatsApp and social media platforms Facebook and Instagram to promote these products within their social circles.
It has about 20,000 resellers and more than 1,000 suppliers on its marketplace, mainly in the categories of fashion, lifestyle and home, and kitchen. “We are building a new distribution channel for suppliers and helping housewives earn from within their social networks,” said CEO Vidit Aatrey.
A reseller earns 10-20% commission on each transaction. Mukul Arora, managing director at SAIF Partners said, “This is a very Indiaspecific opportunity with strong tailwinds, and has potential to change how long tail products are sold in India.”
Meesho has partnered with thirdparty logistics players to enable deliveries. About half of its orders are fulfilled through cash on delivery, 25% through payment gateways, for which it has tied up with Razorpay, while the rest are done through mobile wallets.
