Indian social commerce giant Meesho has reportedly closed a substantial $275 million funding round, signaling confidence from investors despite increasing competition in the e-commerce space. This funding is the first tranche of a larger funding round, which is expected to reach a total of $600 million, according to a report by the Economic Times.
The current funding round has seen participation from both existing and new investors. A TechCrunch report noted that investors like WestBridge Capital and Norwest Venture Partners are trying to get into Meesho, which counts Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank as its backers. While the final details are still being ironed out, Meesho is currently valued at $3.9 billion, down from its previous valuation of $4.9 billion following its last funding round in September 2021.
This funding will fuel Bengaluru-based startup’s growth initiatives, which include potentially moving its domicile back to India from the US. This move, often referred to as a “reverse flip,” is a strategic step towards a future Initial Public Offering (IPO) in the Indian market.
Offering a diverse array of attractively priced, unbranded goods, Meesho has carved a niche among low- to mid-income customers, constituting a significant segment of India’s consumer base. By adopting an asset-light model and outsourcing delivery, Meesho significantly reduces operational costs while maintaining service quality. The TechCrunch report, citing from a recent Jefferies note, further noted that with reportedly over 440,000 annual transacting sellers and a catalogue exceeding 120 million listings, Meesho boasts one of the broadest product assortments in the market.
Despite its success, Meesho faces intensifying competition in India’s e-commerce landscape. Rivals like Amazon India have recently launched initiatives targeting similar customer segments. Called Bazaar, Amazon quietly introduced this special store on Amazon.in, featuring affordable and trendy fashion and lifestyle products. The affordable online store is available on the Android Amazon shopping app.
