Meesho, a number one e-commerce startup in India with about 150 million transacting customers, has secured $275 million in a brand new funding spherical, the corporate disclosed in a securities submitting.
The brand new funding is an element of a bigger financing spherical that’s prone to embody secondary transactions and balloon to over $500 million, individuals acquainted with the matter informed TechCrunch.
The Bengaluru-headquartered startup, which operates a social commerce platform, is being valued at about $3.9 billion within the spherical, the individuals stated, requesting anonymity as deliberations are nonetheless ongoing. The startup, which has raised greater than $1.2 billion thus far, was valued at $4.9 billion when it final raised capital in September 2021.
There have been just a few traders attempting to get into Meesho, together with WestBridge Capital and Norwest Enterprise Companions. WestBridge final 12 months purchased Meesho shares from Enterprise Freeway, an early-backer. The corporate counts Meta, Constancy, Peak XV, Prosus Ventures, B Capital, and SoftBank amongst its backers.
Indian every day The Financial Instances first reported the brand new funding.
Meesho is among the many quickest rising e-commerce startups within the nation. It had run-rate GMV of greater than $5 billion, Bernstein analysts estimated earlier this 12 months.
Meesho has efficiently captured the eye of value-conscious Indians with its attractively priced, various and unbranded assortment of products. The startup’s worth proposition seems to be resonating effectively with low- to mid-income prospects, who kind the majority of India’s consuming class.
With 440,000 annual transacting sellers and over 120 million listings, Meesho boasts one of many widest assortment of products throughout platforms, catering to the complicated and heterogeneous preferences of the Indian market, Jefferies wrote in a latest observe to its purchasers.
Conventional e-commerce platforms in India have primarily targeted on high-income shoppers and branded suppliers, leading to common order values (AOVs) effectively above ₹1,000 (about $12). In distinction, Meesho’s AOV is often under ₹350.
“Meesho’s algorithm prioritises listings by considering a number of components together with vendor score, product score, buyer opinions, prospects’ previous procuring behaviour, recognition of the product, and so forth. Therefore, pricing additionally influences the discoverability of a product itemizing on {the marketplace},” Jefferies analysts wrote.
“Meesho’s fulfilment prices are a lot decrease than friends, which permits the platform to supply decrease costs to buyer vs. competitors. With a view to drive prices decrease, Meesho follows an asset-light mannequin and outsources the supply. Meesho has practically half the share of India’s annual 3PL e-logistics cargo,” the Jefferies observe learn.
However the competitors is heating up. Amazon India not too long ago launched Bazaar, a “particular retailer” that includes inexpensive and classy trend and life-style merchandise.
