Meesho Business Model & Revenue Model

Anik Banerjee Anik Banerjee Himangi Khare Himangi Khare
Nov 22, 2021 10 min read
Meesho Business Model & Revenue Model

Online purchasing is ruling the market now. With a bundle of e-commerce websites coming into prominence with their wide range of products across niches along with affordable and convenient services for the users that can be trusted, purchasing online has become very much a reality.

The fact that online shopping websites and e-commerce stores have been changing the lives of buyers and sellers ever since they emerged cannot be argued. However, it is also important to note here that these websites are presenting enormous opportunities in the way of the people who want to be resellers and thereby, arrange a decent margin for themselves.

Meesho is one of the greatest examples of an Indian social eCommerce company, which also extends numerous opportunities for small businesses and individuals who want to start their own online businesses with the help of social media platforms like Facebook, Whatsapp, and Instagram.

Founded by batchmates and IIT Delhi graduates, Vidit Aatrey and Sanjeev Barnwal in 2015, the Meesho app is a mobile-first eCommerce platform for resellers that includes housewives, domestic oldsters, and others, who are fond of using social media channels like WhatsApp, Facebook, Instagram, and others to sell merchandise within their non-public community typically recognized as social circles.

Originally started as Meesho, the name of the company is inspired by β€œMeri Shop”, translated to "my shop" in English and the thought that it would serve as a shop for everyone in the country. Β 

Today Meesho business model has more than a million dealers in over 700 cities in India on its platform. It additionally offers distribution to get admission to a few other 20,000 producers through its platform. Meesho has raised $1.1 billion until now. Meesho's reselling business works through a huge network of social media platforms. The company recorded revenue of INR 307 Cr in FY20, which is an increase of around 3.8x when compared to FY19, where it earned around INR 80 cr.

Utilizing the networks created with the resource of using WhatsApp agencies and different social media systems, Meesho's business plan claims to usher in clients to serve as online dealers at decreased acquisition costs. Right at the onset, Meesho began to draw massive investment from the likes of Facebook, Naspers, DST Partners, RPS Ventures, and Shunwei Capital and currently claims to be a "one-stop destination for women's clothing and accessories," which also an exclusive range of men's fashion along with offering the unique opportunity to become resellers. When it comes to reselling businesses Meesho is often cited as "India's #1 Reselling app, trusted by 1 Crore+ Resellers".

Statista reported in 2020 that 3.6 billion+ people from all over the world were using social media then, and the numbers are estimated to be somewhere around 4.41 billion in 2025. With around 2.89 billion+ monthly active users, Facebook is hailed as the most popular social network worldwide, as of November 2021, which is followed by Youtube (2.29 bn), WhatsApp (2 bn), and Instagram (1.39 bn), and the numbers are forever growing. This evolving social media landscape is making room for an income for many and Meesho is one of the companies that strongly believes in it and is profiting from it! Β 

Meesho - Latest News
Meesho - Rise of A Social Commerce App
Meesho - Bogged Down by Delivery Expenses
Meesho - Revenue Model
Meesho - Business Model
Meesho - Funding and Valuation
Meesho - How to make Money from it?
Meesho - FAQs

Meesho - Latest News

November 19, 2021 - Meesho announces MeeSOP program, which will allow all full-time employees to convert upto 25% of their CTC into ESOPs, which will be subjected to a minimum threshold of INR 50,000.

October 30, 2021 - Meesho is all set to launch a second employee stock ownership plan (ESOP) liquidity program worth $5.5 million sometime in November.

April 13, 2021 -Meesho plans to diversify its business model to target 100 million small businesses, a plan that pits the startup against online retail giants like Amazon and Flipkart in India.

April 5, 2021 - Meesho raised $300 million in a new round of funding from SoftBank Vision Fund 2, shooting company's valuation to $2.1 billion, thereby joining the esteemed Unicorn Club.

FY20 - Meesho recorded revenue of INR 341.6 Cr in FY20. The company's expenses touched INR 657 Cr. As a result, losses spiraled to INR 315.4 Cr in FY20.


Selling Products Online Is Easier Than You Think: Get To Know How
If you are willing to start an online business by selling product online, youneed not bother with a splendid product or open physical store. The most idealapproach to begin is to start selling products online from other companies. Youcan get the accessibility of the products through drop transpor…

Meesho - Rise of A Social Commerce App

Meesho Business Model, Revenue Model
Meesho Journey

Meesho - Bogged Down by Delivery Expenses

Meesho online business claims to have more than 15K providers and a pair of Million retailers throughout India. It has raised over $215 Million from the investors solely with an aim of establishing social dealers and the market surrounding them. Meesho announced revenues of around INR 341.6 Cr in FY20, ending March 31, 2020. This is a 4X spike from the INR 84.8 Cr revenue that the company has seen in 2019. However, the expenses of the shopping app continued to grow by 3.5X to INR 657 Cr, thereby signaling a loss of INR 315.4 Cr in the same year, which was around INR 100.42 Cr in the previous fiscal. The company, which had reportedly spent around INR 185.3 Cr in FY19, which increased by 15.8x from INR 10.97 Cr that it had spent in FY18, has a history of spending, which contributes majorly to its losses.

Meesho's Major Expenses
Meesho's Major Expenses

Meesho’s resellers shortlist merchandise from the stock and try to share them with those who are within their community of consumers, including their own circle of relatives, members, pals, or other acquaintances. Resellers are allowed to promote the goods at fees that they deem healthy for their target consumers. Once the merchandise is shortlisted, the reseller locates the order with Meesho and enters the deal along with arranging for the transport. In most cases, Meesho helps with the deliveries with the help of its huge network of logistics service providers operating throughout the country. This service is free of cost!

Besides, Meesho also offers free cash on delivery services available for the customers. Therefore, the only thing that's currently bothering Meesho and its services is the loss that the company is still seeing.

Meesho Business Model | How Does Meesho earns Money

Meesho - Business Model

Meesho primarily operates as a social e-commerce platform, thereby following a D2C model. The business model of the company can also be explained as a B2B along with being a B2C if we highlight the reselling opportunities that Meesho brings in!


Shocking Growth of Shopping Apps in Pandemic [2020 Stats]
The State of Growth of Shopping App Marketing 2020 reports that a mobilemarketing analytics and attribution platform, notes that India witnessed about a 250% increase in non-organic growth of shopping apps install during the strictlockdown period running from March. It shows that generally peopl…

Meesho - Revenue Model

While the Meesho business app is spending closely on helping last-mile transport for its social sellers, the organization is also earning from the same. Meesho charges a standard delivery fee plus a 10 - 20% commission based on the product from all the sellers that the organization has listed thus far. Further, it additionally expenses a hefty penalty for product returns.

Meesho presently has an organization of 750+ employees and is focused on 20 Million+ resellers. Meesho's business model operates just like the business model of any other eCommerce service provider. With 50% of Meesho’s target market relying on Tier 2, 3, and 4 cities, the corporation claims to have a presence in 1000+ cities where it facilitates resellers to begin promoting with 0 funding.

As a reseller, you want to percentage a product that is indexed at the Meesho app around your community on social media systems and you may earn a fee regularly on a sale basis. There are lakhs of products to pick from and as a reseller, you don’t have to fear the logistics, payments, and the delivery of a product that you sell. Meesho works at the industrial enterprise version comparable to different e-trade companies. Let's run down their sales streams for a better understanding of Meesho's Business Model and how it drives its revenues, thus the Revenue Model:

Commission

Just like Amazon, Meesho additionally makes money with the help of commissions that they earn from the sellers. The company charges around 10-20% commissions from the sellers.

Logistics

Meesho's shipping expenses are a little high but the company is looking to push that down. However, with the help of cutting-edge logistics technology, Meesho adds some bucks to its overall revenue.

Advertisements

As the number of dealers is increasing each day, Meesho considerably adds to their income by featuring them on their app and website. The sellers who want to showcase their products on the platform are charged a significant amount by Meesho.

Data

As all of us are aware of the concept of big data, where data is almost as treasured as oil if not more. Meesho takes hold of a huge amount of data a part of which it sells to its partner companies so that they can use it to their own benefit and to the benefit of the consumers. However, Meesho strives to keep the consumers' data and other sensitive data safe with them.

How does Meesho Reselling works

Meesho - Funding and Valuation

Meesho has raised $1.1 billion in total, as of September 30, 2021. The fund, it raised was led by some of the best Venture companies and angels including YC, Facebook, Naspers, Sequoia Capital, Shunwei Capital, and SAIF Partners.

The reports dated July 5, 2021, mentioned that Meesho was aiming to raise over $100 million in the latest round of fundraising that will be led by two new and existing investors. Softbank and Prosus will be the primary faces of this new round of investment, said the reports, which when successfully executed, will be the second fundraising round of the company and shoot its valuation to anything between $3.5 to 4 Billion.

The talks of the upcoming Meesho round took shape in the form of a gigantic $570 million round led by Fidelity Management and Eduardo Saverin's B Capital Group, which the company raised today, September 30, 2021. This helped the company more than double its valuation from what it recorded six months ago to attain a valuation of $4.9 bn. The previous round led by Softbank helped the company to mop up around $300 million to attain the unicorn status.

Date Stage Amount Investors/Shareholders
September 30, 2021 Series F $570 mn B Capital and Fidelity Management
April 5, 2021 Series E $300 mn Softbank Vision Fund
August 12, 2019 Series D $125 mn Prosus and Naspers
June 14, 2019 Corporate round $25 mn Facebook
November 5, 2018 Series C $50 mn DST Partners, RPS Ventures, Shunwei Capital
June 7, 2018 Series B $11.5 mn Sequoia Capital
October 12, 2017 Series A $3.4 mn Elevation Capital
August 18, 2016 Seed Round $120K Y Combinator
March 1, 2016 Angel Round $180K Investopad, Venture Highway, Rajul Garg
Jan 15, 2016 Seed Round - -

Best Business Ideas for Women
Women [/tag/women-entrepreneurs/] have been entering many fields and industriesthat they were absent in the past. They have been breaking through theglass-ceiling for quite some time now, and there are many professions they aretaking up and excelling in. In this article, we will take a look at th…

Meesho - How to make Money from it?

Yes, you can definitely earn from Meesho. As Meesho proclaims itself as India's number 1 reselling app, it surely has its own perks. To make money on Meesho you can simply choose from the products indexed on the Meesho app and share them around your community on WhatsApp, Facebook, and other social media platforms, different pages, and agencies and you may earn a fee in line with its policies.

As soon as you share the products, you would start to receive inquiries. You can then simply add your margin on top of the product charges and shipping charges, and disclose the final price to the customer. Place the order on the app only after a customer confirms the order. The customer would get the order delivered within the next 2-3 business days and all the while you can conveniently track the order on the app.

Please note: In case you place a COD order, your customer would have to make the payment to our logistics partner. Once, Meesho receives the payment, it will then transfer the margin that you are entitled to back to your bank account within 10 working days or the digital payments provider that is aligned with your economic institution.


List of Items you can Sell on Meesho
Meesho is an Indian-based mobile application. Meesho is a social commerceplatform. The company was founded in the year 2015 and is established inBangalore. The company helps small businesses to start their business throughcertain social channels which involve WhatsApp, Facebook, Instagram, etc. …

Meesho - FAQs

How much is Meesho's Revenue?

Meesho recorded revenue of INR 341.6 Cr in FY20. The company's expenses touched INR 657 Cr. As a result, losses spiraled to INR 315.4 Cr in FY20.

How Meesho earns money?

Meesho charges a standard delivery fee plus a 10 to 20% commission based on the product.

What is Meesho?

Meesho app is a mobile-first eCommerce platform for resellers consisting of housewives or at-domestic oldsters that then use channels consisting of WhatsApp, Facebook, Instagram, and others to sell merchandise inside their non-public community typically recognized as social circles.

Who is the founder of Meesho?

Vidit Aatrey and Sanjeev Barnwal are the founders of Meesho.

When was Meesho founded?

Meesho was launched in December 2015.

Must have tools for startups - Recommended by StartupTalky

Great! Next, complete checkout for full access to StartupTalky.
Welcome back! You've successfully signed in.
You've successfully subscribed to StartupTalky.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.