[Funding alert] Meesho raises $570M from Fidelity and B Capital at $4.9B valuation
Social commerce platformhas raised $570 million at a valuation of $4.9 billion. The round was led by Fidelity Management and Research Company and B Capital Group. The round also saw participation from existing investors Prosus Ventures, SoftBank Vision Fund 2, and Facebook. Other new investors include Footpath Ventures, Trifecta Capital, Good Capital and others.
With an aim to reach 100 million monthly transacting users by December 2022, Meesho expects to utilise the fresh round of funding to grow its technology and product talent by 2.5x, increase its roster to 50+ million products, and become the platform of choice for customers, entrepreneurs, and sellers from across India.
(L-R): Sanjeev Barnwal and Vidit Aatrey, Co-founders, Meesho
Meesho is also looking to expand its groceries and FMCG offerings with Farmiso (Meesho Grocery), its community group buying business to 200+ cities. By making online grocery shopping affordable for first-time users across India’s Tier II markets, the company is enabling them to shop from a wide selection of groceries at ticket sizes as low as $1-$2.
Vidit Aatrey, Founder and CEO, Meesho, said,
“The next wave of growth in India’s digital consumerism will undoubtedly come from Bharat. We’ve always focussed our efforts on enabling entrepreneurs from Tier II+ markets to expand their business and in turn uplift small economic pockets in the country. The new round brings us a step closer to realising our mission to democratise internet commerce for all, increase regional participation in the digital economy, and add momentum to local businesses."
The company is invested in providing entrepreneurs and consumers equity in ecommerce by reducing entry barriers, improving logistical infrastructure for Tier II+ markets, and fuelling discoverability of hyperlocal businesses and products.
With initiatives like zero percent commission, sellers can now earn better profit margins and grow their business, while providing individual entrepreneurs and consumers access to locally sourced products at lowest prices, the company said.
Vidit added, "The participation of Fidelity Management and Research Company and B Capital Group is a big vote of confidence for our efforts. We will continue to invest in talent to build best-in-class tech and product solutions, while focussing on growth and furthering our efforts in scaling our online grocery business, Farmiso. I am confident we will continue to chart new milestones as we enable online success for every Indian business.”
With a vision to enable 100 million small businesses, including individual entrepreneurs, to succeed online, Meesho is democratising internet commerce by bringing a range of products and new customers online. What started as a reseller-focussed platform enabling millions to sell online, has now become a single ecosystem connecting sellers to consumers and entrepreneurs.
“We have evaluated ecommerce opportunities across emerging markets and are excited about Meesho’s focus on strong unit economics and a consumer-first approach. We are excited to partner with Meesho and its exceptional team that is democratising ecommerce for a billion internet users across the country. Meesho’s business model has an incredibly compelling value proposition with entrepreneurs, end customers, and suppliers consolidating on one platform. It has rapidly emerged as a leading player in this space. Meesho is now enabling 100 million SMBs across Tier II+ cities, empowering them to sell online, leveraging its digital commerce platform,” said Kabir Narang, Founding General Partner at B Capital Group.