Meesho Business Model & Revenue Model

Himangi Khare Himangi Khare
Jul 28, 2021 8 min read
Meesho Business Model & Revenue Model

Online purchasing remains ruled through the method of non-public networks and that’s the community that social trade structures like Meesho app usually tap. Today Meesho business model has more than a million dealers throughout seven-hundred 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 business plan claims to usher in clients to serve as online dealers at a decreased acquisition cost. While it’s now clear from the employer’s as a substitute tepid average performance in FY19, Meesho’s version drew massive investment from the likes of Facebook, Naspers, DST Partners, RPS Ventures and Shunwei Capital.

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

According to Statista, over 2.14 Billion humans are predicted to save for items and offerings on-line with the resource of using 2021. Further, social systems having a big person base like WhatsApp (400 Million), Facebook (241 Million) and Instagram (72 Million) are predicted to behave as an ability catalyst to gasoline this growth.

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

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.


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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 $215 Million from investors with a focal point on constructing social dealers. The employer’s reviews for the economic year finishing March 2019 might now no longer make top analyzing for those investors. Meesho has pronounced a lack of INR 100.24 Cr, a 19X boom from FY18. The employer filings have proven that Meesho online shopping app pronounced earnings of INR 84.88 Crore in FY19, a 13X boom in competition to INR 6 Crore in FY18.

Meesho's Major Expenses
Meesho's Major Expenses

Meesho’s resellers shortlist merchandise from its stock and percentage those with their community of consumers, who can be their own circle of relatives members, pals or different acquaintances. Resellers are allowed to promote the goods at fees they deem healthy for his or her goal consumers that is stated to assist promote in more volume. Once the merchandise is shortlisted through the supply up consumer, the reseller locations the order with Meesho and enters the cope with information for the transport, that is regarded after through Meesho. That version appears satisfactory on paper, however, logistics due to the fact it seems is a killer rate for startups.

The different predominant rate for Meesho modified into employees - worker blessings make up 33.5% of the full fees or INR 21.1 Crore in FY19. That’s less than what Meesho offers as bonus, rewards and reductions to resellers. The INR 29.16 Crore spent in FY19 in this line item, is a whopping 42x Y-o-Y boom relative to the INR 68.17 Lakh in FY18.

Meesho Business Model | How Does Meesho earns Money

Meesho - Revenue Model

While Meesho business app is spending closely on helping last-mile transport for its social sellers, the organization is likewise incomes through them. Meesho charges a standard delivery fee plus a 10 - 20% commission based on the product. Further, it additionally expenses a hefty penalty for product returns.

This is sincerely seen in how the organization earned for FY19. Meesho’s filings confirmed that it earned INR 41.14 Crore as fee within the year, a 32x boom from FY18. Further, the organization earned penalty earnings of INR 2.1 Crore in FY19. Meesho’s earnings from delivery expenses grew 19X from INR 1.804 Crore in FY18 to INR 36.78 Crore in FY19. As cited above, its annual sales modified into INR 804.88 Crore in FY19, a 13X boom in competition to INR 6 Crore in FY18.


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Meesho - Business Model

Meesho presently has an organization of workers of 750 employees and is focused on 20 Million resellers through 2020.With 50% of Meesho’s goal market coming from Tier 2,3, four cities, the corporation claims to have a presence in round one thousand cities it facilitates resellers to begin promoting with 0 funding and from everywhere within the world.

As a reseller, you want to percentage a product that is indexed at the Meesho app round your community on social media systems and you may earn a fee regularly with a sale basis. There are multiple lakh products to pick from and as a reseller, you don’t have to fear the logistics, payments, and the delivery of a product which you sold. Meesho works at the industrial enterprise version comparable to different e-trade companies. Let's run it down their sales streams for higher understanding of Meesho's Business Model.

Commission

Just like Amazon, Meesho additionally makes cash on a fee foundation which also can additionally range from 10-20 thousand depending upon the class of the product.

Logistics streams

Meesho shipping expenses presently appear excessive and that they surely are searching to push that down however doing in a powerful way the utilization of logistics technology can bag them numerous greenbacks of their sales.

Rank Push

As the variety of dealers grows at the platform they may be cabin a position to choose to push their product on the pinnacle of seeking and for that cause it's miles cabin a position to upload each other circulation of sales for Meesho.

Data

As all of us realize in today’s international records is as treasured as oil and that surely provides a sales shape for Meesho within the future.

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 - -

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Meesho - How to make Money from it?

To make cash on Meesho you want to proportion a product that is indexed at the Meesho app round your community on WhatsApp and Facebook walls, pages, and agencies and you may earn a fee in line with the sales foundation. As an individual, you may upload your fee and transport rate above the price, and whilst an order receives shows you'll acquire notification concerning that. The purchaser will revive their order in subsequent 2-three operating days.

If you revive the net charge you want to gather the very last quantity collectively with your margin however in case of COD, the charge should be gathered through the transport partner, and inside 10 operating days, your margin should be credited for your economic institution account.


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.

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