As per CEO Vidit Aatrey, the startup plans to use the funding to hire for its tech and business operation teams. It is also looking to scale up its platform by bringing in more resellers through community engagement and referrals.
The round brings the total funding raised by the startup to $3.7 Mn. Last August, it had raised an undisclosed amount of funding from VH Capital, Kashyap Deorah, Rajul Garg, Oyo Rooms’ Maninder Gulati, Abhishek Jain, Jaspreet Bindra among others. Prior to that, in July 2016, Meesho was selected by YCombinator for a three-month programme based out of its Mountain View headquarters. The accelerator invests $120K in startups for a 7% equity stake in the selected startups.
Meesho: Leveraging The Growing Social Ecommerce Market
Founded by IIT graduates Vidit Aatrey and Sanjeev Barnwal in 2015, Meesho is a mobile-first ecommerce platform that caters to the specific needs of small businesses in India. Businesses can create an online shop, share on WhatsApp and Facebook. They can keep customers updated with new products, get new customers leads in real-time and collect payments over chat.
Basically, 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. Currently, 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.
Aatrey told ET, “We are building a new distribution channel for suppliers and helping housewives earn from within their social networks.”