Facebook backs Meesho in first startup investment in India
Digbijay Mishra, Madhav Chanchani | TNN | Updated: Jun 13, 2019, 17:05 ISTHighlights
- Meesho's re-sellers, who are typically entrepreneurs, home makers from small towns, rely heavily on Facebook group platforms --WhatsApp and Facebook, to share the products among consumers
- A majority of these entrepreneurs or re-sellers on Meesho are women, who are selling online for the first time
(Representative image)BENGALURU: Facebook has made its first equity investment in an Indian startup- Meesho, which connects re-sellers to manufacturers to sell goods via social-media platforms. Facebook's direct investment in the Bengaluru-based startup signifies the social media giant's ambitions in online commerce in India. Facebook did not disclose the size of the investment but its India VP and MD, Ajit Mohan said it would be now a minority shareholder in the four-year old startup.
Meesho's re-sellers, who are typically entrepreneurs, home makers from small towns, rely heavily on Facebook group platforms --WhatsApp and Facebook, to share the products among consumers. A majority of these entrepreneurs or re-sellers on Meesho are women, who are selling online for the first time.
"We have been discussions with Meesho for about 2-3 months actively. With this investment in Meesho, we want to fuel a business model that can result in rapid job creation and the rise of a female entrepreneurial class in India," said Mohan.
Started by IIT-Delhi graduates Vidit Aatrey and Sanjeev Barnwal, the company has raised over $65 million from marquee investors like DST Partners, RPS Ventures (started by former SoftBank managing partner Kabir Misra), and Shunwei Capital among others. It has about 2 million re-sellers, who are largely from non-metro cities. Mohan said the company is targeting the first-time internet users, both in terms of re-sellers and consumers.
"Over the last 4 years we have grown from our humble beginnings at IIT, to 15,000 suppliers and 2,000,000 re-sellers throughout India. We share a common goal with Facebook - to enable community and help small businesses grow. This commitment from Facebook will help us leapfrog towards our goal," added Aatrey.
Meesho's re-sellers, who are typically entrepreneurs, home makers from small towns, rely heavily on Facebook group platforms --WhatsApp and Facebook, to share the products among consumers. A majority of these entrepreneurs or re-sellers on Meesho are women, who are selling online for the first time.
"We have been discussions with Meesho for about 2-3 months actively. With this investment in Meesho, we want to fuel a business model that can result in rapid job creation and the rise of a female entrepreneurial class in India," said Mohan.
Started by IIT-Delhi graduates Vidit Aatrey and Sanjeev Barnwal, the company has raised over $65 million from marquee investors like DST Partners, RPS Ventures (started by former SoftBank managing partner Kabir Misra), and Shunwei Capital among others. It has about 2 million re-sellers, who are largely from non-metro cities. Mohan said the company is targeting the first-time internet users, both in terms of re-sellers and consumers.
"Over the last 4 years we have grown from our humble beginnings at IIT, to 15,000 suppliers and 2,000,000 re-sellers throughout India. We share a common goal with Facebook - to enable community and help small businesses grow. This commitment from Facebook will help us leapfrog towards our goal," added Aatrey.
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